Ghana’s cedi ends 2020’s Q1 with a 1.77% appreciation against the dollar

Ghana’s cedi ends 2020’s Q1 with a 1.77% appreciation against the dollar

- The cedi has recorded a 1.77% gain against the dollar at the end of the first quarter of the year 2020

- The appreciation was as a result of the Central Bank's Forward Forex Auction and the fall in imports

- As of Wednesday, March 18, 2020, had appreciated by 3.47% to the US dollar, 13.38% to the British pound and 5.81% to the euro

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The Ghana cedi ended the first quarter in 2020 by appreciating 1.77% against the dollar.

The appreciation has been linked to the Forward Forex Auction initiated by the Bank of Ghana.

It has also been attributed to the fall in imports as a result of the coronavirus epidemic.

READ ALSO: Finance minister opens up about possible review of 2020 budget in July

A classfmonline.com report shows that the cedi was, however, subjected to pressure in the last three weeks to the end of the first quarter.

This was as a result of the liquidation of some portfolio investments by foreign investors amid growing uncertainty about the coronavirus pandemic.

According to Ken Ofori-Atta, the minister of finance, there have been some disinvestments of local bonds by about 25% of foreign investors.

The cedi, as of Wednesday, March 18, 2020, had appreciated by 3.47% to the US dollar, 13.38% to the British pound and 5.81% to the euro.

In February 2020, the cedi registered an appreciation of an estimated 5.75% to the US dollar on the interbank market.

Information available shows that the current 14-day partial lockdown in two regions has led to a fall in trading activities in the currency market.

In other news, the government has predicted a 1.5% fall in the growth of Gross Domestic Product (GDP) due to the partial lockdown.

The minister of finance, Ken Ofori-Atta, speaking in Parliament, indicated that the current project is a reduction from the initial 6.8% projected for 2020.

According to Ofori-Atta, the spread of the coronavirus and the subsequent lockdown has led to a slowdown in economic activities in various sectors of the economy

he added that as the effects of the outbreak unfold, the projected growth is expected to further worsen in the event of a full lockdown.

READ ALSO: IMF gives Ghana and other borrowers 1-year extension to pay debts

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Source: Yen Newspaper

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