Currency News for October 19th 2020

The Ghanaian Cedi at the start of the week posted a mixed performance against its three major trading partner currencies on the Bank of Ghana (BoG) inter-bank trading platform. The Cedi fell against the US Dollar to extend its weekly losses but gained momentum to end weeks of declines against the British Pound Sterling and the Euro. On the Open Forex Market (oanda.com), the local currency gained traction to post gains against the three currencies after weeks of worsening performances.

The Cedi in the last quarter of the year is expected to be pressured to maintain its stability as Ghana nears its December polls where election uncertainties are likely to mount pressures on the local currency. Demand for forex by importers ahead of the Christmas festivities will also be expected to further mount pressures on the local currency. However, plans made by the central bank to build additional forex reserves to contain any shocks as the year draws to a close will give the Cedi a bit of a respite to ensure that the local currency maintains its relative stability.

On the BoG inter-bank trading platform, the Cedi weakened by 0.04% to begin the week trading at GHC 5.7085 from previous week’s trade value of GHC 5.7061. The Dollar extended its weekly gains against the Cedi for the fourth consecutive time as investors continue to buy safe-haven assets and currencies over fears of a global surge in coronavirus cases. Against the Pound and the Euro, the Cedi hardened by 0.43% and 0.13% to begin the week trading at GHC 7.4221 and GHC 6.7266 from previous week’s trade values GHC 7.4544 and 6.7351 respectively.

On the Open Forex Market (oanda.com), the Cedi appreciated by 0.23%, 0.85%, and 0.74% to trade at GHC 5.8112, GHC 7.5343, and GHC 6.8294 at the start of the week from previous week’s trade values of GHC 5.8247, GHC 7.5988, and GHC 6.8802 against the Dollar, the Pound, and the Euro respectively. The Pound fell against most of its trading pairs including the Cedi as trade talks between the UK and the EU stalled fueling concerns that the UK is set to crush out of the bloc without a trade deal.

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 5.7085 [October 19th, 2020] indicating a 3.10% 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 5.8112 [October 19th, 2020], representing a 2.02% year-to-date depreciation of the Cedi against the US Dollar.