COVID-19: Cedi loses marginal grounds to dollar but appreciates 3.47%

Despite the rising number of COVID-19 cases across the globe, the Ghana cedi appears to be still doing better against the major foreign currencies, daily forex transactions indicate.

It is, however, losing ground albeit slowly to the US dollar in particularly in the last couple of days but may end the first quarter of this month with an appreciation of about 3%.

As of Wednesday, 18 March 2020, the local currency has appreciated by 3.47% to the US dollar, 13.38% to the British pound and 5.81% to the euro.

It lost 0.20% to trade at GHS5.34 to one American ‘green back’, but gained 1.80% and 1.11% respectively to sell at GHS6.45 to one British pound and GHS5.87 to the euro.

At the forex bureau, the cedi is going for GHS5.69 to one US dollar and GHS6.90 to one British Pound. For the euro, it is selling at GHS6.17.

Some analysts and economists have partially attributed the strength of the cedi to the global outbreak of the coronavirus. This is because most global economies have slowed down production whilst oil prices have gone very low.

But recent sell off of Ghana cedi assets by investors due to the collapse in oil price and COVID-19 fears have culminated in the cedi losing some gains.

The cedi ended the month of February 2020 with an appreciation of about 5.75% to the US dollar on the interbank market.

The performance is supported by ongoing Bank of Ghana (BoG) interventions on the spot and forward markets coupled with weak importers demand for foreign exchange on the market. The foreign exchange supply-side was also supported by foreign portfolio investment flows to high-yield cedi securities.