Bloomberg News

Ghana Cedi Gains for 1st Day in 3 as Central Bank Sells Dollars

October 26, 2011

Oct. 26 (Bloomberg) -- Ghana’s cedi strengthened for the first time in three days as the nation’s central bank sold dollars to stem the currency’s decline.

The cedi added as much as 0.3 percent to 1.5914 per dollar and traded 0.1 percent stronger at 1.5937 by 3:23 p.m. in Accra, the capital. The currency of the world’s second-biggest cocoa producer reached 1.6411 on Oct. 17, the weakest since at least May 1994, when Bloomberg started compiling the data.

Ghana’s central bank sold $50 million to lenders today to meet demand from their clients for foreign currency, Adams Nyinaku, head of treasury at the Accra-based regulator, said by phone today. Yesterday, $35 million was sold to oil companies to pay for imports and $10 million was sold on Oct. 24, he said.

“The central bank’s regular dollar sales help to satisfy corporate demand on the market,” Kofi Pianim, a currency trader at the Ghanaian unit of Standard Bank Group Ltd. said in a telephone interview today. “Because of the bank’s intention to be regular on the market, we have seen demand pressure for the U.S. currency eased.”

--Editors: Ana Monteiro, Emily Bowers

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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