Bloomberg News

Ghana Cedi Rallies, Posts World’s Best Five-Day Gain to Dollar

October 21, 2011

Oct. 21 (Bloomberg) -- Ghana’s cedi climbed the most in more than two weeks against the U.S. currency and headed for the biggest five-day advance in eight months as the central bank sold dollars to stem the local currency’s drop.

The cedi strengthened 1.4 percent to 1.5919 per dollar, the biggest increase since Oct. 4, as of 12:25 p.m. in Accra, the capital. The currency of the world’s second-biggest cocoa producer has appreciated 3 percent this week, making it the world’s best performer in the period among more than 170 currencies tracked by Bloomberg. The cedi is set for the best weekly increase since the five days through Feb. 11.

The central bank sold $98 million on Oct. 17 and about $50 million yesterday, Adams Nyinaku, head of treasury and Collins Antwi, an assistant director said in separate interviews when the actions were taken. The bank had earlier sold $565 million this month, governor Kwesi Amissah-Arthur said Oct. 19. There was no one available for comment today when Bloomberg News called the department, according to a a woman who answered the call and declined to be identified.

“Clearly, Bank of Ghana support is behind strong rally,” Coura Fall, a Johannesburg-based analyst at Citigroup Inc., said by e-mail today. “Most emerging-market currencies have rather depreciated this week on the strong dollar.”

The cedi has strengthened 3 percent since Oct. 17, when it reached 1.6411 per dollar, the weakest since at least 1994, when Bloomberg started compiling the data.

--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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