No Result
View All Result
Thursday, May 26, 2022
Citi Business News
  • Home
  • News
    • All
    • Agriculture
    • Economy
    • General
    • Government
    • Local Economy
    • Top Stories

    Ghana Life Insurance Ltd accused of employing delay tactics in payment of claims

    BoG urged African DFIs to enhance credit rating positions to boost investment

    Stringent measures needed to deal with illicit financial transactions in Africa – Akufo-Addo

    Gold exports push Ghana’s trade surplus to $1.3 billion in April

    Old Mutual celebrates 177th anniversary globally, 10 years in Ghana

    Gov’t expenditure needs to be checked to help deal with inflation – ICAG

    Take control of financing on the continent – Ofori-Atta to AfDB

    We’ll avert any looming food crisis with effective planning – AfDB Boss

    Value of MoMo transactions decrease by 3% between March and April 2022

  • Business
    • All
    • Agribusiness
    • Banking And Finance
    • Manufacturing
    • Markets
    • Mining
    • Oil And Gas
    • Real Estate
    • Tourism
    • Transport

    Ghana Life Insurance Ltd accused of employing delay tactics in payment of claims

    BoG urged African DFIs to enhance credit rating positions to boost investment

    Stringent measures needed to deal with illicit financial transactions in Africa – Akufo-Addo

    Gold exports push Ghana’s trade surplus to $1.3 billion in April

    Value of MoMo transactions decrease by 3% between March and April 2022

    Inflation rate likely to drop to single digits in 2023 – Dr. Ernest Addison

    Monetary Policy Rate increased again by 200 basis points; now at 19%

    Government partners private companies to mine abandoned iron ore in Oti Region

    Manufacture of petroleum products push PPI to 31.2% in April

  • TECHNOLOGY

    Government to invest heavily in internet safety – Ursula pledges

    Ho Node Hub rebrands as Node Eight

    Elon Musk strikes deal to buy Twitter for $44bn

    Block chain’s success will depend on supportive policy environment – Prof. Quaynor

    1.5% E-Levy rate will negatively impact GH¢6.9 billion target – Prof. Quartey

    Transactions to be affected by E-levy

    Bethniel Finance emerges winner in Innovation Challenge Program

    Taxing of non-resident e-commerce entities in Ghana could push prices up – Technology Consultant

    BoG cautions against fraudulent money-doubling scheme ‘BitCash Currency Exchange’

  • INTERNATIONAL
    • All
    • Africa
    • Asia
    • Europe
    • Middle East
    • US

    Stringent measures needed to deal with illicit financial transactions in Africa – Akufo-Addo

    Take control of financing on the continent – Ofori-Atta to AfDB

    We’ll avert any looming food crisis with effective planning – AfDB Boss

    Standard of cars assembled in Ghana will not be compromised – GSA assures

    GUTA urges gov’t to get other countries to open their borders to facilitate trade

    Kyle Kelhofer appointed as IFC Senior Country Manager for Benin, Ghana, Liberia, Sierra Leone, and Togo

    Greater, more diverse participation in global trade is key to achieving Africa’s economic transformation – World Bank

    Seth Terkper advises against e-levy; urges government to run to IMF

    AfCFTA members conclude negotiations on rules of origin to enhance free trade

  • FEATURES
  • Videos
Citi Business News
  • Home
  • News
    • All
    • Agriculture
    • Economy
    • General
    • Government
    • Local Economy
    • Top Stories

    Ghana Life Insurance Ltd accused of employing delay tactics in payment of claims

    BoG urged African DFIs to enhance credit rating positions to boost investment

    Stringent measures needed to deal with illicit financial transactions in Africa – Akufo-Addo

    Gold exports push Ghana’s trade surplus to $1.3 billion in April

    Old Mutual celebrates 177th anniversary globally, 10 years in Ghana

    Gov’t expenditure needs to be checked to help deal with inflation – ICAG

    Take control of financing on the continent – Ofori-Atta to AfDB

    We’ll avert any looming food crisis with effective planning – AfDB Boss

    Value of MoMo transactions decrease by 3% between March and April 2022

  • Business
    • All
    • Agribusiness
    • Banking And Finance
    • Manufacturing
    • Markets
    • Mining
    • Oil And Gas
    • Real Estate
    • Tourism
    • Transport

    Ghana Life Insurance Ltd accused of employing delay tactics in payment of claims

    BoG urged African DFIs to enhance credit rating positions to boost investment

    Stringent measures needed to deal with illicit financial transactions in Africa – Akufo-Addo

    Gold exports push Ghana’s trade surplus to $1.3 billion in April

    Value of MoMo transactions decrease by 3% between March and April 2022

    Inflation rate likely to drop to single digits in 2023 – Dr. Ernest Addison

    Monetary Policy Rate increased again by 200 basis points; now at 19%

    Government partners private companies to mine abandoned iron ore in Oti Region

    Manufacture of petroleum products push PPI to 31.2% in April

  • TECHNOLOGY

    Government to invest heavily in internet safety – Ursula pledges

    Ho Node Hub rebrands as Node Eight

    Elon Musk strikes deal to buy Twitter for $44bn

    Block chain’s success will depend on supportive policy environment – Prof. Quaynor

    1.5% E-Levy rate will negatively impact GH¢6.9 billion target – Prof. Quartey

    Transactions to be affected by E-levy

    Bethniel Finance emerges winner in Innovation Challenge Program

    Taxing of non-resident e-commerce entities in Ghana could push prices up – Technology Consultant

    BoG cautions against fraudulent money-doubling scheme ‘BitCash Currency Exchange’

  • INTERNATIONAL
    • All
    • Africa
    • Asia
    • Europe
    • Middle East
    • US

    Stringent measures needed to deal with illicit financial transactions in Africa – Akufo-Addo

    Take control of financing on the continent – Ofori-Atta to AfDB

    We’ll avert any looming food crisis with effective planning – AfDB Boss

    Standard of cars assembled in Ghana will not be compromised – GSA assures

    GUTA urges gov’t to get other countries to open their borders to facilitate trade

    Kyle Kelhofer appointed as IFC Senior Country Manager for Benin, Ghana, Liberia, Sierra Leone, and Togo

    Greater, more diverse participation in global trade is key to achieving Africa’s economic transformation – World Bank

    Seth Terkper advises against e-levy; urges government to run to IMF

    AfCFTA members conclude negotiations on rules of origin to enhance free trade

  • FEATURES
  • Videos
No Result
View All Result
Citi Business News
No Result
View All Result

Cedi firms up against Pound after days of Brexit volatility

bycitibusinessnews
June 28, 2016
in Banking And Finance, Government, Local Economy, Top Stories
Share on FacebookShare on TwitterShare on Whatsapp

The cedi has begun firming up against the British Pound after experiencing some level of depreciation following the UK’s exit from the EU.

The cedi last Thursday saw some level of depreciation against the pound on both the interbank foreign exchange market as well as in forex bureaus across the country.

The move saw the cedi depreciating against the pound by over one percent on the interbank exchange market on Friday while losing about 8 pesewas across forex bureaus in the country.

ADVERTISEMENT

But in a rather interesting twist of events the cedi has begun recovering from the decline and making some significant gains.

The pound on the interbank exchange market is now at 5 cedis 18 pesewas (selling) after hitting 5 cedis 79 pesewas (selling) while at forex bureaus it hit 5 cedis 88 pesewas (selling) and is now at 5 cedis 40 pesewas (selling) as at Monday June 27, 2016.

Economist Dr. Ebo Turckson explains to Citi Business News the cedi’s previous poor performance against the pound could be blamed on currency speculators.

“What we currently see on the forex market I understand and do suspect is that the currency speculators and their activities are causing it. Because the pound is falling, they are rushing to get some pounds so that when things stabilize and the currency begins to rise then they go in for it and then get out of it to make some profits. If that is what is happening and the forex bureau is operated like what you expect, the market would respond that way causing the cedi to depreciate,” he stated.

Dr. Turckson added that the current show of strength by the cedi against the pound was expected as the pound has been struggling since the exit of UK from the EU.

“The effect of the announcement has made the British pound weaker against other currencies and I think that is also playing on the cedi. So the cedi has gained not because of anything but because the decision has made the pound weaker so I will not say I am surprised by the interbank rate because the pound has been falling ever since the announcement was made.”

Cedi’s performance

Ghana’s cedi which had been trading at 5 cedis 72 pesewas to a pound (buying) and 5 cedis 73 pesewas (selling) since last week Monday changed gear on Thursday June 22 and begun trading at 5cedis 78 pesewas (buying) and 5 79 pesewas (selling) on the interbank foreign exchange market where banks trade among themselves.

Currency analysts believe the marginal decline of the cedi against the pound was due to the exit though earlier other currency analysts had told Citi Business News the cedi was not likely to feel any impact against the British pound with any decision by the UK to stay or exit the EU.

Currency analyst, Samuel Ampah argued that the volume of trade between the UK and Ghana as well as the limited financial aid granted to the latter will not result in a fast depreciation of the cedi.

“I can clearly state that there will not be any impact. Ghana is not currently benefiting directly from Britain in terms of aid. When Ghana was regarded as a poor or developing country, you could have Britain giving out some aid. Now Ghana is not directly benefiting so much in terms of aid from Britain that is how come you can guard the British pound being used to support our economy. But because we are not earning so much from Britain, we might not necessarily feel it.”

Global impact

Elsewhere – across the globe however, the British pound plummeted by 10 percent  reaching levels not seen since 1985 well below the value at the worst of the 2008 financial crisis the euro dropped nearly 4 percent while shares in London were instantly down by nearly 16 percent.

The BBC reported that the London stock market had plunged more than 8% in the wake of the UK’s vote to leave the EU.

In the opening minutes of trade, the FTSE 100 index fell more than 500 points before regaining some ground.

Banks were especially hard hit, with Barclays and RBS falling about 30%.

Earlier, the value of the pound fell dramatically as the referendum outcome emerged. At one stage, it hit $1.3236, a fall of more than 10% and a low not seen since 1985.

The Bank of England said it was “monitoring developments closely” and would take “all necessary steps” to support monetary stability.

Impact on GSE

As expected there was no impact of the news on the Ghana Stock Exchange (GSE) which usually reacts slowly to external developments.

British bank Stanchart’s (SCB) share on the GSE recorded no price change and remained at 14 cedis 20 pesewas.

–

By: Norvan Acquah – Hayford/citibusinessnews.com/Ghana

Related Posts

Banking And Finance

Ghana Life Insurance Ltd accused of employing delay tactics in payment of claims

byBobbie Osei

Some disgruntled customers of Ghana Life Insurance Company Limited are accusing the company of using delay tactics in the payment...

Read more

BoG urged African DFIs to enhance credit rating positions to boost investment

Stringent measures needed to deal with illicit financial transactions in Africa – Akufo-Addo

Gold exports push Ghana’s trade surplus to $1.3 billion in April

Gov’t expenditure needs to be checked to help deal with inflation – ICAG

Take control of financing on the continent – Ofori-Atta to AfDB

We’ll avert any looming food crisis with effective planning – AfDB Boss

Next Post

Kenya:Equity Bank boss roots for State domestic borrowing

Video on Demand: Business Weekly

ADVERTISEMENT
Citi Business News

© 2019 Citi Business News - CitiBusinessNews.com by CNR Digital.

Navigate Site

  • Home
  • News
  • Business
  • TECHNOLOGY
  • INTERNATIONAL
  • FEATURES
  • Videos

Follow Us

No Result
View All Result
  • Home
  • News
  • Business
  • TECHNOLOGY
  • INTERNATIONAL
  • FEATURES
  • Videos

© 2019 Citi Business News - CitiBusinessNews.com by CNR Digital.