Bloomberg News

Ghana Cedi Heads for 2-Week Low as Locals Take Lead in Bond Sale

July 29, 2011

July 29 (Bloomberg) -- Ghana’s cedi headed for a two-week low after a sale of five-year bonds where local investors bought most of the debt, resulting in reduced demand for the currency of the world’s second biggest cocoa producer.

The cedi weakened as much as 0.5 percent to 1.5158 per dollar before trading 0.3 percent down at 1.5124 as of 3:51 p.m. in Accra, according to data compiled by Bloomberg. A close at that level would be the weakest since July 15 and would pare the cedi’s gain this month to 0.2 percent.

Bank of Ghana yesterday sold 301 million cedis ($199 million) of the notes, the first sale of five-year debt since 2007, said Adams Nyinaku, head of treasury. Investors bid for 448 million cedis of the 300 million cedis of bonds on offer.

“Though yesterday’s auction was oversubscribed, it was bought largely by local investors,” Jacob Brobbey, a currency trader at the local unit of Barclays Bank Plc, said by phone. “Otherwise, today we should see more offshore investors buying the cedis to pay for their investments.”

Calls to the treasury department of the central bank today weren’t answered.

--Editors: Ana Monteiro, Peter Branton

To contact reporter on this story: Moses Mozart 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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