Cedi bounces back to gains against major currencies

Accra, Jan. 23, GNA - The Ghana cedi bounced back on Friday with gains against the major trading currencies but fell slightly again the Dollar pushing down the old Coast Securities (GCS)-Cedi Index by 0.62 points.

It appreciated by 2.15GHp to the UK Pound, 1.79GHp to the Euro, 0.04GHp to the CFA and depreciated by 0.07GHp to the dollar. The Index, which measures the average performance of the cedi against these major trading currencies, therefore, dropped at 118.78 points on to close the week on Friday from 119.40 points on Thursday. The cedi gains value when the index goes down and it loses value when the index goes up.

The year-to-date depreciation is 2.96 percent to the dollar and a year-to-date appreciation of 3.28 percent to the Pound, 4.69 percent to the Euro and 4.89 percent to the CFA. The Index change for the year to date and change base year (July 03 2007) to date now stands at 0.26 per cent and 18.78 per cent respectively.

The Index is calculated as a geometric weighted average of changes in the four currency rates against the cedi at the Inter-bank market, relative to a base of 100 set on 03 July 2007, when the Bank of Ghana redenominated the national currency at a base value of 100. It is inversely proportional. A quote of 105.50 means the cedi value has depreciated by 5.50 per cent since the base period, while a quote of 85.3 means the cedi has gained by 14.77 per cent since its base year. The following are the exchange rates for the four currencies on Friday, January 23, 2009.

Currency Buying Selling Depreciation (-)/Appreciation (+) (GH¢) (GH¢) (Gp)

Dollar 1.2316 1.2684 - 0.07

Pound 1.6861 1.7367 + 2.15

Euro 1.5843 1.6312 + 1.79

Equivalence of currency to one GH¢

CFA 402.00 414.02 - 0.04 23 Jan. 09