The Ghanaian currency, the Cedi has appreciated by about 0.6 percent to the US dollar since the beginning of this year.
This confirms the strong performance of the cedi since last year, as it achieved a record 3.9 percent depreciation to the world’s most important currency.
According to the Bank of Ghana’s March 2021 Summary of Economic and Financial Data, the figures put the trading value of the cedi to the Dollar at 5 Cedis 72 Pesewas.
The Cedi’s 2020 performance made it one of the best-performing currencies in Sub-Saharan Africa.
Its impressive performance also made it the best since 2017 when it depreciated by only 4.88 percent.
At the forex bureau, the rate of depreciation was even lower at 2.2 percent. Analysts believe the cedi benefited from a myriad of factors including the Bank of Ghana’s Forex Forward Auction and the diversified exports.
Many organizations have projected a lower depreciation of the Cedi to the Dollar this year. For instance, Databank Research Department is predicting a 6 cedis 18 pesewas to the Dollar by end of the year’s rate in 2021.
This will be 3.02 percent depreciation and lower than the 3.9 percent depreciation recorded last year. For the Euro, the Cedi has appreciated by 3.5 percent but declined in value by 1.3 percent to the British pound.
Factors that could support the Ghanaian currency this year include the planned Eurobond issuance and a modest recovery in oil export receipts without significant loss in gold revenue.
