Government emphasizes strong performance of cedi against major trading currencies in 2020

Caretaker Finance Minister, Osei Kyei-Mensah-Bonsu, has flaunted the 2020 performance of the cedi against major trading currencies.

Presenting government’s 2021 Budget and Economic Policy statement before Parliament last week, Kyei-Mensah-Bonsu pointed out that irrespective of the effects of the coronavirus pandemic, the cedi’s depreciation last year against especially the US dollar was the lowest recorded in the fourth republic.

“…Cumulatively, Mr. Speaker, the Ghana cedi depreciated against the US dollar, the Pound Sterling and the Euro, by 3.9 percent, 7.1 percent, and 12.1 percent respectively. This compares with the larger depreciation rate of 12.9 percent, 15.7 percent, and 11.2 percent from the US dollar, the Pound Sterling, and the Euro respectively during the same period in 2019. “

He further added, “It is worth noting that the depreciation of the Ghana cedi against the US dollar in 2020 is the lowest recorded in the fourth republic notwithstanding the COVID-19 pandemic.”

In the first half of 2020, the cedi has performed marginally well against major trading currencies. Due to the adverse impact of the coronavirus pandemic and its associated effect on global currencies, the cedi has been projected to experience some stability against major trading currencies for 2021.

Presently, the cedi is trading at GH¢5.73 to the US dollar while the British Pound is trading at GH¢8.00. The Euro on the other hand is trading at GH¢6.85.