The Ghana cedi ended the first half of this year with a marginal depreciation of 0.04% to the US dollar.
This was triggered by an uptick in demand over the second quarter which overturned the impressive appreciation in the first quarter of this year.
But the Bank of Ghana's policy interventions, particularly the Forex Forward Auction and the staggered payment of dividend by foreign banks to their shareholders aided the performance of the cedi.
The cedi's half-year performance is similar to last year and one of the best in recent time.
Senior Economic Analyst at Databank Research, Courage Martey told Joy Business uptick in demand particularly from large corporates and multinationals culminated in a weakened cedi in the second quarter of 2021.
“After the impressive performance we saw from the Ghana cedi in the first quarter of this year with a gain of about 0.55% against the dollar, the cedi could not hold onto that gain in the second quarter because we saw an uptick in demand particularly from corporate and multinational within the second quarter of the year.”
“And this demand pressure was further worsened by limited supply of forex on the market despite the Central Bank’s intervention on the forward forex market; because of this demand pressure, in the second quarter of this year, the depreciation we recorded overturned the appreciation we enjoyed in the first quarter of this year”, Mr. Martey added.
“Over the course of the first half of this year, the cedi lost marginally by about 0.04 to the dollar”, he emphasised.
Cedi ended quarter one as Africa’s best performing currency
The cedi ended the first quarter of this year as the best performing currency in Africa.
This follows the about 0.56% against the dollar, similar to 2020 performance.
The strong performance made it the best currency among 15 important African countries, including the Egyptian pound, Nigerian naira and South African rand.
Latest Stories
-
Otumfuo calls for improved payment systems for road contractors
5 mins -
Don’t transmit the Anti-LGBTQ+ Bill to Akufo-Addo – Presidency to Parliament
11 mins -
Ghana’s economic downturn not only due to COVID-19 but also excessive spending – IMF
14 mins -
Canon Miraisha Partners with SOS Children’s Villages Morocco to Empower Youth through Photography Education
29 mins -
Gunmen in Nigeria kidnap about 100 in weekend attacks
1 hour -
Aftermath of soldiers killings: Bloodbath in Delta, villagers flee, hide in forests
2 hours -
Evergrande: China property giant and its founder accused of $78bn fraud
2 hours -
All set for ‘Detor – The Rise of A Warrior Hunter’ premiere
2 hours -
Obaapanin Grace Duoduwaa aka Ogrey
2 hours -
How to heal your heart after you’ve been left
3 hours -
Joy FM’s Eastern Camp Adventure: Discoveries, experiences, excitement!
4 hours -
There are 3 types of divorced men — and only one is relationship material
4 hours -
More than 79,000 Ghanaian girls 12 -17 years married, living with men
4 hours -
Tamale water crisis forces students out of school
4 hours -
Religious leader urges participation in 2024 election; calls for support for Aflao community
4 hours