Currency News for July 5th 2021

As global risk sentiments begin to turn negative on the delta-variant virus wave, the local currency is coming under intense pressure and remains on course to erase all gains recorded against some of its major trading partner currencies. On the Open Forex Market (oanda.com), the Ghana Cedi sustained losses against the US Dollar, the British Pound Sterling, and the Euro as investors reassess investing in risky markets.

The Cedi’s performance this week comes amid high demand for forex by businesses, traders, and investors. Last auction results for the central bank’s forex forward auctions showed that bids submitted came in at USD 92.3 million as against an offer amount of USD 25.0 million, resulting in a bid cover ratio of 3.69 times, the highest so far in 2021. As Ghana prepares to issue its first green and social bonds later in the year, it is expected that proceeds from the bonds will enable the central bank to continue to support the Cedi.

On the Bank of Ghana inter-bank market, the Cedi tumbled by 0.07% erasing all its earlier gains against the Dollar. It traded at GHC 5.7670 at the start of the week against last week’s opening trade figure of GHC 5.7627 against the Dollar. The greenback registered its seventh consecutive weekly gain against the Cedi this week as virus concerns globally provided some safe-haven support for the Dollar. Against the Pound and the Euro, the Cedi maintained its footing as it recorded gains of 0.21% and 0.49% to open the week trading at GHC 7.9902 and GHC 6.8438 from last week’s trade values of GHC 8.0072 and GHC 6.8773.

On the Open Forex Market (oand.com), the Cedi depreciated by 0.95%, 0.58%, and 0.41% to trade at GHC 5.9128, GHC 8.1860, and GHC 7.0155 at the start of the week from previous week’s trade values of GHC 5.8575, GHC 8.1385, and GHC 6.9870 against the Dollar, the Pound, and the Euro respectively. The single currency added to its gains against the Cedi as manufacturing activities in the Eurozone continues to expand at a faster pace.

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 5.7670 [July 5th, 2021] indicating a 0.07% year-to-date 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 5.9128 [July 5th, 2021], representing a 0.41% year-to-date depreciation of the Cedi against the US Dollar.