Bloomberg News

Ghana Cedi Weakens for Fourth Day as Banks Buy Dollars

October 12, 2011

Oct. 12 (Bloomberg) -- Ghana’s cedi weakened for a fourth day as banks bought back dollars to shore up supplies after low foreign-investor interest in a three-year bond auction planned by the central bank for tomorrow.

The currency of the world’s second-biggest cocoa producer depreciated as much as 0.2 percent to 1.6349 per dollar before paring the loss to trade at 1.6319 per dollar as of 3:37 p.m. in Accra, the capital, according to data compiled by Bloomberg.

“Offshore interest in the bonds is so far disappointing,” Coura Fall, a Johannesburg-based currency trading analyst at Citigroup Inc., said in an e-mailed comment today. Some lenders may be “short dollars in expectation of dollar inflows for the bonds” and are now looking to rebuild their reserves, Fall said.

The Accra-based Bank of Ghana will offer 300 million cedis ($184 million) worth of the debt tomorrow, it said Sept. 27.

--Editors: Emily Bowers, Linda Shen.

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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