Interbank market news scan at 11:38 am AST. Latest on central banks and forex.

Investors may take Janet Yellen’s expected endorsement of a market-driven exchange rate as an additional green light for the U.S. currency’s long-term downtrend. Dollar Shorts Mount Before Yellen Outlines Market-Based Policy – Bloomberg

Gold edged up, recovering from an almost seven-week low, amid caution in markets as investors assessed the outlook for the dollar and the timeline for a U.S. stimulus package. Gold Edges Up From December Low With Focus on Stimulus, Dollar – Bloomberg

Oil futures edged lower as the dollar rose, while physical crude prices in Asia continued to weaken. Oil Near $52 With Virus Still Surging and Dollar Strengthening – Bloomberg

Five of six rate setters at the Bank of Israel voted to keep the benchmark interest rate at 0.1% on Jan. 4, minutes of the discussions showed on Monday. Five of six Bank of Israel MPC members voted to keep rate at 0.1%, minutes show | Reuters

The European Union needs a “masterplan” to move euro financial services from London to the bloc if it wants to expand the single currency’s role in a global economy dominated by the U.S. dollar, a senior EU lawmaker said on Monday. Markus Ferber, a senior member of the European Parliament, said if the EU wants to compete with the greenback, it needs a financial system to match it. EU needs ‘masterplan’ to grab euro finance from London | Reuters

Brazil’s central bank is poised to hold its benchmark rate steady again on Wednesday but will likely emphasize the need for policy normalization in response to quickly developing inflation pressures, a Reuters poll showed. Brazil central bank to hold rates this week, stress policy normalization | Regina Leader Post

Ghana’s demand for US dollar decreased last week; increased for other major currencies …

Ghana‘s demand for the US dollar appears to have fallen last week. According to data from OANDA, a foreign exchange brokerage, during the period 1 December to 5 December 2020, the Ghana price of a dollar fell from 5.8456 GHS to 5.8280 GHS (-0.301%).

The Ghana price for the Euro climbed from 7.0123 GHS to 7.0631 GHS (0.724%) between 1 December and 5 December. During the same period, the Ghana price of the British pound also increased 0.106% from 7.8194 GHS to 7.8277 GHS. In addition, the Ghana price of the Chinese yuan (offshore) increased 0.356% from 0.8908 GHS to .8940 GHS.

The Bank of Ghana, the nation’s central bank, reported on 4 December 2020 a mid-range interbank rate for the US dollar of 5.7142 GHS. The interbank rate for the Euro came in at 6.9409 GHS while the interbank rate for the British pound chimed in at 7.7082 GHS.

Ghana’s current policy rate is 14.50%, with an inflation target of 6 to ten percent. The current rate of inflation, according to the Bank of Ghana, is 10.1%. The country’s 91-day Treasury note interest rate is at 13.5937%. Ghana’s interbank interest rate is 13.57%.

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