Bloomberg News

Ghana’s Cedi to Gain to Two-Month High on Bond Sale, Access Says

July 22, 2011

July 22 (Bloomberg) -- Ghana’s cedi is set to appreciate to a two-month high against the dollar over the next week as offshore investors buy the West African nation’s currency to invest in its first sale of five-year bonds since 2007.

The cedi will gain to 1.5060 per dollar, Kwabena Owusu, a currency trader at the local unit of Access Bank Plc said in a telephone interview today. That would be the strongest closing level since May 31, according to Bloomberg data. The currency appreciated as much as 0.2 to 1.5070 per dollar before trading 0.1 percent down at 1.5115 by 1:14 p.m. in Accra, the capital.

“Our expectation is that dollar sales by offshore investors before next Thursday’s auction of five-year bonds will push the cedi up a little bit,” Owusu said. “We think the cedi will gain about 0.3 percent by the close of the auction, from yesterday’s close.”

The Bank of Ghana will offer 300 million cedis ($198.5 million) of five-year bonds on July 28, it said in a prospectus on its website.

--Editors: Ana Monteiro, Linda Shen

To contact reporter on this story: Moses Dzawu in Accra at mdzawu@bloomberg.net.

To contact the editor responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net.


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