Currency News for December 6, 2021

The Ghana Cedi opened the week mixed 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). The Cedi added to its gains against the Pound but stayed subdued against the Dollar as investors assesses the impact of a divided parliament on government business next year.

The Cedi has widely come under intense pressure against the Dollar extending its week-on-week losses against the greenback for the thirteenth consecutive time despite Ghana’s central bank quick response to boost Dollar supply through forex forward rate auctions. Rising public debt levels which is currently pegged at 77.8% of GDP, fiscal slippages, amongst others have painted gloomy pictures of Ghana’s economy and increased investor nervousness.

On the BoG inter-bank trading platform, the Cedi edged down by 0.08% and 0.19% to open the week quoted at GHC 5.9232 and GHC 6.6853 from last week’s open trade values of GHC 5.9182 and GHC 6.6723 against the Dollar and the Euro respectively. The Dollar rose against a host of its trading peers after the US Fed admitted that inflation was going to stay high for longer than previously anticipated, and the Fed was expected to factor this development into account when setting policy. Against the Pound, the Cedi traded higher by 0.31% from GHC 7.8747 at the open of last week to GHC 7.8506 this week.

On the Open Forex Market (oanda.com), the Cedi plunged by 0.39% and 0.47% against the Dollar and the Euro as it began the week trading at GHC 6.1956 and GHC 6.9942 from last week’s opening quote of GHC 6.1716 and GHC 6.9615 respectively. The Euro rose against the local unit despite disappointing German data which clouded the growth outlook for manufacturers in Europe’s largest economy. The Cedi kept its strong footing against the Pound as it rose by 0.16% from GHC 8.2231 quoted at the opening of last week to GHC 8.2098 quoted at this week.

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 quoted at GHC 5.9232 [December 6th, 2021] indicating a 2.78% year-to-date (ytd) depreciation. Similarly, on the Open Forex Market (oanda.com), the Ghana Cedi traded at GHC 5.8885 [January 4th, 2021] and is currently trading at GHC 6.1956 [December 6, 2021], representing a 5.22% ytd depreciation against the US Dollar.