Bloomberg News

Ghana’s Cedi Rises to 2-Week High as Miners, Bank Sell Dollars

October 20, 2011

Oct. 20 (Bloomberg) -- Ghana’s cedi gained for a fourth day to the highest in almost two weeks as the central bank and mining companies sold dollars in Africa’s second-biggest gold producer.

The cedi appreciated as much as 0.6 percent to 1.6194 per dollar, the highest since Oct. 7, before trading at 1.6212 by 3:35 p.m. in Accra, the capital, according to data compiled by Bloomberg.

“Dollar sales from mining companies and the central bank provided enough liquidity to meet demand,” Kobla Nyaletey, a currency trader at the local unit of Barclays Bank Plc said in a telephone interview. “The central bank sold about twice the normal sales size.”

The Bank of Ghana sold almost $50 million today to support banks’ clients, including manufacturing, commerce and telecommunication companies, Collins Antwi, an assistant director at the treasury department of the bank, said by phone today. “The central bank has provided adequate liquidity since the beginning of this month.”

South Africa is the continent’s top gold miner. Companies including AngloGold Ashanti Ltd. and Newmont Mining Corp. operate in Ghana.

--Editors: Emily Bowers, 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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