FCD Currency World Cup
Following last weeks examination of the Brazilian Real, Croatian Kuna, Chilean Peso and the Australian Dollar today we have three more matches and for the currency world cup we will be examining Ghana v USA. The game is likely to be another exciting match but what about a comparison of the two currencies?
Ghana Cedi (GHS)
The Cedi was introduced in July 2007 and replaced the old Cedi and is divided into 100 Pesewas. In Ghana itself there is a diverse range of resources and a strong constuction and exportation markets which makes Ghana one of the top ten fastest growing economies in the world and the fastest growing economy in Africa and with the new currency introduced relatively recently with the aim to strengthen the economy and make their currency more transparent. However, recently inflation has continued to rise and the Ghana Cedi has weakened as a result which is putting their economy under pressure and there is even talk that the country may need a bailout from the International Monetary Fun (IMF). The pressure has mounted so much that the Cedi has weakened by 28% this year which has really taken the shine off the Ghanaian economy and re-enforces the fact that the Government will have to act or the IMF will step in. Currently there is 5.25 GHS to £1.
US Dollar (USD)
The Dollar is the most commonly traded currency and is the world’s most held reserve currency and as a result of this there are several countries that use the Dollar as their official currency. In recent times the Dollar has moved significantly being as high as $2.11 to the Pound down to as low as $1.34 to the Pound in a very short timescale during the financial crisis. The rates have now become a little more stable although has recently weakened quite considerably against Sterling presenting clients with some excellent opportunities to buy Dollars. Currently the Federal Reserve Bank of America are under taking a tapering programme which sees them reduce the amount of money they are pumping into their economy by $10bn per month and currently the monthly figure is now sitting at half the level it was when it started. The American economy is starting to show signs of recovery from a very heavy and deep recession but there is still a long way to go before the country can consider being out of the woods. Currently the rate against Sterling is around $1.6975 to the Pound.
So, comparing the two currencies and economies it is clear that the Dollar is the stronger of the two, it is so widely traded and there is so much of it in circulation there compared to the Cedi it really is a bit of a walkover, so can we expect an American victory tonight or will the match go against the grain of the currency comparison?
If you have any currency requirements and would like to discuss the options available to you please either give one of our experienced currency brokers a call on 0800 328 5884 or if calling from abroad on 0044 1494 725353 alternatively you can email me directly on email@example.com