Currency News for June 21st 2021

After strong investor participation in Ghana’s recent sale of its 7-year bond, the Cedi this week gathered momentum to post gains against its three major trading partner currencies on the Open Forex Market (oanda.com). On the Bank of Ghana (BOG) inter-bank trading platform, the Cedi maintained its resilience against the British Pound Sterling and the Euro as it extended its weekly gains for the third consecutive time this week. It, however, failed to end the US Dollar’s run as the local currency sustained its fifth consecutive weekly loss against the greenback this week.

A strong expression of interest in Ghana’s recent long-term paper by both domestic and offshore investor’s reaffirmed investor’s confidence in the local economy despite a drastic fall in general interest rates. Data available at Ghana’s central securities depository shows that as of May, 2021 foreign investor’s holding in domestic debt securities stood at GHC 35.0 billion compared with GHC 26.8 billion over the same period last year. This comes to support the local currency’s strong performance against some of its trading pairs so far in the year.

On the BoG inter-bank trading platform, the Cedi fell marginally by 0.01% to trade at GHC 5.7546 at the start of the week from previous week’s opening trade value of GHC 5.7543 against the Dollar. The Dollar has been on a rollercoaster ride against most of its peers buoyed by higher yields on US short-term Treasury assets leading to Dollar buying. Against the Pound and the Euro, the Cedi surged by 1.43% and 1.78% to open the week trading at GHC 8.0075 and GHC 6.8534 from last week’s opening trade values of GHC 8.1239 and GHC 6.9775 against the Pound and the Euro respectively.

On the Open Forex Market (oanda.com), the Cedi soared by 0.04%, 1.70%, and 1.86%, beginning the week at trading values of GHC 5.8260, GHC 8.0831, and GHC 6.9296 from last week’s open trading figures of GHC 5.8281, GHC 8.2228, and 7.0606 against the Dollar, the Pound, and the Euro respectively. The Pound failed to build on its last week’s gain against the Cedi as disappointing economic data from the UK weighed on the Pound.

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 5.7546 [June 21st, 2021] indicating a 0.15% year-to-date appreciation. Similarly, on the Open Forex Market (oanda.com), the Ghanaian Cedi traded at GHC 5.8885 [January 4th, 2021] and is currently trading at GHC 5.8260 [June 21st, 2021], representing a 1.06% year-to-date appreciation of the Cedi against the US Dollar.