Currency News for March 15th 2021

After weeks of continuous run, the Ghana Cedi fell marginally this week to register its first weekly decline in seven weeks against the US Dollar on the Bank of Ghana (BoG) inter-bank trading platform. On the Open Forex Market (oanda.com), the Cedi further extended its gains against the greenback for the ninth consecutive time as offshore appetite for local-denominated assets continue to remain supportive of the local currency’s recent strength.

The Cedi has so far in 2021 maintained its relative stability (experienced from last year) against some of its major trading partner currencies. The 2021 budget statement explained that the Cedi performed better in 2020 than in 2019 as pressures from corporate demand coupled with pandemic-induced portfolio outflows were offset by improved forex inflows mainly from the Eurobond issuance and the IMF Rapid Credit Facility.

On the BoG inter-bank trading platform, the Cedi tumbled by 0.01% and 0.41% to begin the week trading at GHC 5.7299 and GHC 6.8368 from previous week’s opening trade values of GHC 5.7296 and GHC 6.8089 against the Dollar and the Euro respectively. Against the British Pound Sterling, the Cedi maintained its traction as it appreciated for the third consecutive time by 0.05% to trade at GHC 7.9553 at the start of the week from previous week’s trade value of GHC 7.9589. The Pound registered a considerable loss against a host of currencies after UK data showed some disappointing results. The monthly GDP report showed that the economy contracted by 2.9% in January with the Bank of England further predicting the UK economy would contract by 4% across the first quarter.

On the Open Forex Market (oanda.com), the Cedi rose by 0.05% to begin the week at GHC 5.7500 from previous week’s opening trade value of GHC 5.7530. Against the Pound and the Euro, the Cedi lost steam as it declined by 0.24% and 0.37% to open the week trading at GHC 7.9999 and GHC 6.8620 from previous week’s trade value of GHC 7.9804 and GHC 6.8365 respectively. The Cedi tumbled against the single currency despite a weaker demand for the Euro buoyed by concerns over the slow pace of the vaccination programme in the Eurozone coupled with fears of a third COVID-19 wave in France, Germany and Italy.

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 5.7299 [March 15th, 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 5.7500 [March 15th, 2021], representing a 2.35% year-to-date appreciation of the Cedi against the US Dollar.