Ghana Cedi Emerges Best Performing Currency Against US Dollar
By Adedapo Adesanya
The Ghanaian currency, the Cedi, has been ranked as the best performing currency against the US Dollar in the world so far into the second month of 2020.
This followed a survey carried out by Bloomberg, which noted that the cedi beat off competition from 140 other currencies in the world. The statistical data indicated that the Ghanaian currency as at Monday, February 3, 2020, had appreciated by 3.9 percent against the American greenback.
“The currency of the world’s second-biggest cocoa producer has strengthened 3.9 percent in 2020, the most among more than 140 currencies tracked by Bloomberg, a turnaround from last year, when it weakened 13 percent,” the report said.
The performance of the cedi was attributed to fiscal measures put in place by the Bank of Ghana in collaboration with the country’s ministry of finance which last month announced the beginning of forward foreign exchange auctions, which ensured banks and other dealers to make advance purchases of foreign currency to be supplied at an agreed rate later on.
The Ghanaian central bank noted that regulating the supply of the foreign currency will help stabilise the cedi for some time which led to the bank to accept a total of $40 million dollars, which is $38 million less than the amount the country’s banks bid for.
According to Bloomberg, the fortunes of the Ghana cedi is expected to be better and stronger because the country will be issuing a $3 billion Eurobond soon. It was stated that the $3 billion Eurobond will further cushion the cedi from any unforeseen event.
According to Bloomberg, the Head of Treasury at the Republic Bank Ghana Limited, Mr Nana Yaa Faakye, in an interview noted that the Nigerian West African counterpart concluded a series of meetings with international bond investors on Monday for the sale of the Eurobonds.
He also highlighted that the coronavirus outbreak and the recent lunar new year holiday in China has cut back travel and trade and this led to reduction in demand for foreign currency from Ghanaian importers.