Currency News for July 13th 2020

The Ghanaian Cedi extended its losing streak against the US Dollar on the Bank of Ghana (BoG) inter-bank trading platform as it recorded its seventh consecutive weekly decline this week. It also remained under pressure against the British Pound Sterling and the Euro after it failed to recover from previous week’s dip. On the Open Forex Market (oanda.com), the Cedi firmed against the Dollar but fell against the Pound and the Euro.

As investors continue to remain wary of riskier assets and currencies, demand for stable currencies has soared in recent times. Results of forex forward rates auctions show intense demand for Dollars against a stable supply. Auction results over the past one month has revealed that demand for the Dollar is in excess of three times the offer amount.

On the BoG inter-bank trading platform, the Cedi depreciated by 0.07%, 1.17%, and 0.57% to begin the week trading at GHC 5.6746, GHC 7.1625, and GHC 6.4481 from previous week’s trade values of GHC 5.6708, GHC 7.0800, and GHC 6.4113 against the Dollar, the Pound, and the Euro respectively. The Dollar strengthened against many of its trading pairs as a resurgence in coronavirus cases worldwide enhanced the currency’s safe-haven appeal.

On the Open Forex Market (oanda.com), the Cedi recorded its third week-on-week gain against the Dollar after it appreciated by 0.12% to open the week at GHC 5.7992 from previous week’s trade value of GHC 5.8064. Against the Pound and the Euro, the Cedi declined by 0.82% and 0.21% to trade at GHC 7.3142 and GHC 6.5753 at the start of the week from previous week’s trade values of GHC 7.2547 and GHC 6.5615 against the Pound and the Euro respectively. The Pound sustained its momentum against the Cedi on news that the UK government plans to spend GBP 30 million to forestall an unemployment crisis by paying companies to bring back furloughed employees.

According to the Bank of Ghana inter-bank rates, the Ghanaian Cedi began the year 2020 at GHC 5.5370 [January 2nd, 2020] against the US Dollar and is currently selling at GHC 5.6746 [July 13th, 2020] indicating a 2.49% year-to-date depreciation. Similarly, on the Open Forex Market (oanda.com), the Ghanaian Cedi traded at GHC 5.6961 [January 2nd, 2020] and is currently trading at GHC 5.7992 [July 13th, 2020], representing a 1.81% year-to-date depreciation of the Cedi against the US Dollar.