The Ghana cedi ended last year with a depreciation rate of 3.93% to the US dollar, making it one of the best performing currencies in Sub Saharan Africa.
The impressive performance also makes it the best since 2017 when it depreciated by only 4.88%.
At the forex bureau, the rate of depreciation was even lower at 2.2%.
Joy Business learnt the local currency actually appreciated in the final two-weeks of December 2020 at the forex bureau, from a depreciation rate of 3.1%.
Analysts believe that the cedi has benefited from a myriad of factors including the Bank of Ghana’s Forex Forward Auction and the diversified exports.
“This sets a favourable entry into 2021. The expectations are for the GHS [cedi] to remain well supported in Q1-2021 [quarter one 2021] by the improved regulatory oversight, enhanced FX [foreign exchange] forward allotments and continued improvements in risk appetite of non-resident investors’, Courage Kingsley Martey, Senior Economic Analyst at Databank said.
Many analysts had earlier forecast that the cedi will end the year with a less than 5% depreciation to the dollar in 2020.
A stable local currency going forward into the year will help businesses to plan well vis-a-vis their budgeting.
Recent historical performance of the cedi to dollar
- 5 feared dead, 15 injured in accident on Accra-Tema motorway
- #FixTheCountry agitators have no leaders – Barker-Vormawor
- Blunt and Blay: Finding ‘silence’ for Auntie Ohene from uncle Sam’s ‘noise’
- Wesley Girls’ SHS ‘no fasting” policy, strictly for health reasons – Old students
- Woman allegedly murders elder sister over a piece of land
- Over 200 police personnel deployed to enforce mining directives across Ghana
- Ghana’s 4x100m men’s relay team set to pitch camp in Europe ahead of Olympics
- Claims of fasting affecting health unfounded – Islamic Medical Association, Ghana
- Trader jailed for impregnating his physically challenged daughter
- Far from silence, we suffer a culture of noise – Elizabeth Ohene
#FixTheCountry: Ghana has all markings of a failed state; our job as politicians is to – Sam George
Our job is to fix problems; we are fixing them – Bawumia
NDC has no hand in the #FixTheCountry campaign – Sam George
AIDS continues to be a threat to society – Dr Ayisi Addo
Timing of introduction of petroleum levies poor and may worsen businesses – ACEP
Retirement hell: BBC Africa Eye uncovers corruption in pension systems
National Road Safety Authority hires 100 inspectors to enforce compliance with rules
AshantiGold part ways with head coach Romain Folz
Senior Staff Association of Universities of Ghana to resume strike on May 18
Angela Kyerematen-Jimoh: Supporting the women who fuel Africa’s future
Madrid Open: Ashleigh Barty beats Paula Badosa to reach final
Asantehene lauds State Housing Company on efforts to reduce housing deficit
U.S. Ambassador launches $19m activity to boost Agriculture Finance in Ghana under Global Food Security Strategy
Sparrow Pictures introduces all new Sparrow Station apps
Collective efforts needed to fight galamsey – Kwadaso MP