Ghana cedi recovers against major currencies

The Ghana cedi on Friday bounced back and ended the week stronger against the major international currencies when it gained to the Euro and the CFA.

Even though it remained flat with the US Dollar and fell to the UK Pound, its gains were enough to push the Gold Coast Securities (GCS) Cedi-Index down by 0.26 points to close the week.

The Index, the composite measure of the value of the Ghana cedi against the Dollar, Pound, CFA and the Euro, therefore, dropped at 141.63 points on Friday from 141.89 points on Thursday.

The cedi gains value when the index goes down and it loses value when the index goes up.

On a whole, the cedis gained GHp 1.95 against the Euro and GHp0.03 to the CFA. The cedi’s lost to the British Pound was GHp1.45.

Change year to date stands at -2.42 per cent, while change base year (July 03 2007) to date is 41.63 per cent.

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, February 12, 2010.

Source: GNA