Currency News for March 10th 2021

As the government prepares to present to the nation its 2021 budget statement, the Cedi extended its bullish performance against its three major trading partner currencies on both the Bank of Ghana (BoG) inter-bank trading platform and the Open Forex Market (oanda.com) on the back of rising optimism in the economy. The government will be expected to outline measures it intends to embark on to stabilize the local currency as well as assure offshore investors of the economy making a recovery in 2021.

The government has already in a statement commenced processes for its 2021 International Capital Market (ICM) Funding Programme which is intended to raise up to USD 5.0 billion to aid in growth-oriented expenditures in its 2021 budget. The Programme will raise funds from several avenues including a Eurobond and a Diaspora bond. Proceeds from the ICM programme will further boost Ghana’s forex position which should enable the central bank to continue to sustain the Cedi.

On the BoG inter-bank trading platform, the Cedi hardened by 0.10%, 0.34%, and 1.38% to open the week trading at GHC 5.7296, GHC 7.9589, and GHC 6.8089 from previous week’s trade values of GHC 5.7353, GHC 7.9864, and GHC 6.9044 against the US Dollar, the British Pound Sterling, and the Euro respectively. The Cedi’s steam against the Euro continued this week with the local currency posting a year-to-date gain of 3.72% against the Euro, the biggest among the three on the BoG inter-bank trading platform. This comes after data in the Eurozone showed that the block’s economy ended 2020 worse than previously estimated.

The Cedi similarly posted gains against all three sets of major trading partner currencies on the Open Forex Market (oanda.com), adding on to gains registered last week. It climbed by 0.08%, 0.68%, and 1.55% to trade at GHC 5.7530, GHC 7.9804, and GHC 6.8365 at the start of the week from previous week’s opening trade values of GHC 5.7576, GHC 8.0328, and GHC 6.9441 against the Dollar, the Pound, and the Euro respectively. The Cedi extended its weekly gains against the greenback for the eighth consecutive time on the Open Forex Market (oanda.com) despite the Dollar gaining momentum against a host of its trading pairs. The Dollar has been strengthening against some of its pairs buoyed by a recent rise in US Treasury yields.

According to the Bank of Ghana inter-bank rates, the Ghanaian Cedi began the year 2021 at GHC 5.7631 [January 4th, 2021] against the US Dollar and is currently selling at GHC 5.7296 [March 9th, 2021] indicating a 0.58% year-to-date appreciation. Similarly, on the Open Forex Market (oanda.com), the Ghanaian Cedi traded at GHC 5.8885 [January 4th, 2020] and is currently trading at GHC 5.7530 [March 9th, 2021], representing a 2.30% year-to-date appreciation of the Cedi against the US Dollar.