The Ghana Cedi depreciated against all the three major trading currencies on the interbank currency market last week.
According to data from IGS Financial Services, the US dollar posted a marginal gain as US-China trade tension fuelled investor’s demand for the safe haven currency.
The US dollar made a weekly gain of 0.05 per cent to trade at GH¢5.62 on the interbank currency market. The year-to-date depreciation of the cedi thus rose to 1.45 per cent.
The British Pound recovered from a seven-year low against major trading peers buoyed by improving risk sentiments. The Pound’s surge was driven by emerging reports of a successful COVID-19 vaccine trial by Moderna Inc and the reopening of some global economies which boosted investor’s risk appetite.
The British Pound thus appreciated by 0.59 per cent to sell at GH¢6.85 on the interbank currency market. The year-to-date appreciation of cedi thus eased to 6.50 per cent.
The Euro firmed on account of the release of upbeat economic data and proposals of a euro-recovery fund. In the week under review, plans to set-up a 500-euro Franco-German recovery fund aimed at providing financial assistance to member states on the bloc, as well as critical sectors in the economy affected by the pandemic improved investor’s confidence.
The Euro thus benefited from these developments as it appreciated by 0.76 per cent to trade at GH¢6.12. The year-to-date appreciation of the cedi thus declined to 1.54 per cent.
Ghana Stock Exchange
The Accra Bourse equity indices posted mixed outturn after last week’s trading activities. The significant sell-off in some financial stocks vis-à -vis the recoveries in some non-financial stock as investors reacted to the dividend suspension by the central bank in a bid to protect financial institutions resulted in the week’s mixed performance.
Source: graphic.com.gh
