Currency News for September 27, 2021

After two weeks’ of improving performance, the Ghana Cedi lost steam as it began the week nursing losses against the Dollar, the Pound, and the Euro on the Open Forex Market (oanda.com). On the Bank of Ghana (BoG) inter-bank trading platform, the Ghana Cedi sustained losses against the Dollar and the Pound but maintained its momentum against the Euro as it registered its third consecutive weekly gain against the single currency.

The Cedi has over the past two weeks mounted a strong comeback after the central bank increased its intervention in the local currency space to meet the growing demand for forex as economic activities continue to rise steadily. The BoG in its most recent forex forward rates auction lowered its offer amount from USD 75.00 million to USD 50.00 million with a bid cover ratio of 2.68 times. The continuous strong demand for forex coupled with the slow participation of offshore investors in the government’s domestic assets are expected to keep the Cedi pressured in the last quarter of the year.

On the BoG inter-bank trading platform, the Cedi tumbled by 0.02% and 0.32% to trade at GHC 5.8672 and GHC 8.0451 at the start of the week from last week’s opening trade figures of GHC 5.8659 and GHC 8.0193 against the Dollar and the Pound respectively. The greenback added to its gains against the Cedi as higher US Treasury yields boosted the Dollar’s appeal. Against the Euro, the Cedi appreciated by 0.24% to open the week trading at GHC 6.8650 from last week’s open trade value of GHC 6.8818.

On the Open Forex Market (oanda.com), the Cedi plunged by 0.41%, 0.52%, and 0.30% to begin the week trading at GHC 6.0654, GHC 8.3066, and GHC 7.1007 from last week’s opening trade values of GHC 6.0406, GHC 8.2634, and GHC 7.0795 against the Dollar, the Pound, and the Euro respectively. The Pound recovered part of its recent loss against the Cedi on rising optimism that the UK may raise rates earlier than anticipated after two UK policymakers voted for an early end to pandemic-era government bond-buying program.

According to the BoG inter-bank rates, the Ghana Cedi began the year 2021 at GHC 5.7631 [January 4th, 2021] against the US Dollar and is currently selling at GHC 5.8672 [September 27, 2021] indicating a 1.81% year-to-date (ytd) depreciation. 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 6.0654 [September 27, 2021], representing a 3.00% ytd depreciation against the US Dollar.