Bloomberg News

Ghana’s Cedi Heads for Weakest Level on Record Against Dollar

October 14, 2011

Oct. 14 (Bloomberg) -- Ghana’s cedi headed for the weakest on record as companies bought dollars and foreign investors sought the U.S. currency to convert earnings from bonds.

The currency of West Africa’s biggest economy after Nigeria depreciated as much as 0.5 percent to 1.6399 per dollar before paring the loss to 1.6396 by 2:27 p.m. in Accra, the capital, taking its retreat this week to 1.4 percent, a seventh week of declines. A close at this level will be the weakest since May 31, 1994, when Bloomberg began tracking the data.

Ghana’s three-year borrowing costs rose to 14 percent at an auction yesterday, the highest in more than a year, with the central bank allocating 200 million cedis ($122 million), or 51 percent of bids, it said in a statement today.

“Most of the bonds were picked up by local investors who already had cedis,” Jacob Brobbey, a currency trader at the local unit of Barclays Bank Plc said in a telephone interview. “There was still dollar buying by companies as well as foreign investors, who were either converting coupons or proceeds of bonds sold.”

--Editors: Ana Monteiro, Alex Nicholson

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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