Cedi is Africa’s greatest forex for the primary quarter of 2021
Ghana’s native forex ended the primary quarter of 2021 on a constructive observe appreciating 0.6% towards the US greenback because the begin of the yr.
Which means that the Ghanaian cedi has outperformed another 15 frequent currencies in Africa, making it one of the best performing forex. These embrace the Egyptian pound, the Nigerian naira and the South African rand.
In accordance with a Pleasure Enterprise report tracked by GhanaWeb, the efficiency of the cedi is nearly just like that of 2020.
As well as, the cedi benefited from growth-related efforts corresponding to diversified exports of cocoa, gold amongst others.
Explaining the explanations for the efficiency of the cedi, Braveness Martey, Senior Financial Analyst at Databank Analysis, stated: “The Ghanaian cedi ended the primary quarter of 2021 with one other spectacular efficiency, just like what it did within the first quarter. of 2020. “
He added: “You’ll recall that within the first quarter of 2020, the native forex ended the quarter with an appreciation of virtually 1.7% towards the US greenback, making it the second most resilient forex. of our basket of 15 African currencies, solely behind the Egyptian pound.
“It is fairly spectacular, in comparison with the truth that the pandemic has but to offer means, so there’s nonetheless a lot uncertainty within the international monetary market house,” he stated.
Martey attributed the great efficiency of the cedi to the Financial institution of Ghana’s intervention measures put in place specifically on the Foreign exchange (FX) Ahead market.
“An enormous thanks to the intervention measures of the Financial institution of Ghana, significantly within the ahead overseas change market, however the vital inflows of overseas portfolio funding into the bond market, significantly throughout this yr, have vastly elevated. inspired the Ghanaian cedi to place in place the sort of efficiency we see within the first quarter of 2021, ”he argued.
In the meantime, some economists have indicated that the Ghanaian cedi ought to get pleasure from some stability towards main commerce currencies all through this yr.
Globally, the efficiency of many currencies has been affected by the COVID-19 pandemic and devastated economies.