Data made available by the Bank of Ghana (BoG) indicate that the Ghanaian cedi ended the first quarter of this year with a year-to-date appreciation of 0.6 percent against the US dollar.
The year-to-date appreciation of the cedi against the greenback, made it the best among the currencies of 15 important African countries such as the Egyptian pound, Nigerian naira and South African rand.
The performance of the cedi is believed to be benefited from growth in diversified exports, particularly gold and cocoa; the impact of covid-19 which has slowed down global economies and the BoG’s weekly forex interventions.
The cedi’s 2020 performance with a 3.9 percent depreciation against the dollar made it one of the best-performing currencies in Africa. Its impressive performance also made it the best since 2017 when it depreciated by 4.9 percent.
“The Ghana cedi ended the first quarter of 2021 with yet another impressive performance, similar to what it did in the first quarter of 2020. You will recall that in the first quarter of 2020, the local currency ended the quarter with an appreciation of almost 1.7% against the US dollar and that made it the second most resilient currency in our basket of 15 African currencies, only behind the Egyptian pound. It is quite impressive, against the fact that the pandemic has not yet given way so there is still so much uncertainties within the global financial market space.”
“Immense thanks to the Bank of Ghana’s intervention measures, particularly on the FX forward market but the significant inflows of foreign portfolio investments into the bond market especially during the course of this year has been significantly supportive of the Ghana cedi to put up the kind of performance we are seeing in the first quarter of 2021,” said Senior Economist with Databank, Courage Martey.
Quarter one performance of African best currencies to US dollar
Ghana cedi 0.55%
Egyptian pound 0.18%
Nigerian naira 0.00%
Tanzania shilling 0.00%
Kenya shilling -0.31%
