Bloomberg News

Ghana Cedi Heads for 2nd Week Drop on Europe Risk, Import Buying

November 04, 2011

Nov. 4 (Bloomberg) -- Ghana’s cedi headed for a second week of losses as importers and investors bought dollars after the Group of 20 failed to agree on International Monetary Fund resources, curbing demand for riskier assets.

The currency of the world’s second-biggest cocoa producer depreciated as much as 0.3 percent to 1.6058 per dollar before paring the decrease to 1.6040 as of 12:59 p.m. in Accra, the capital, according to data compiled by Bloomberg. The cedi has lost 0.4 percent this week, a second week of declines.

The cedi “continued to see pressure from local importers and offshore names looking to exit the Ghana cedi market,” Chris Nettey, a currency trader at the local unit of Standard Bank Group Ltd., said in an e-mailed comment today.

The U.S. currency was poised for a weekly advance against the euro on concern Greece is headed for default and the sovereign-debt crisis will cause euro-area growth to contract. German Chancellor Angela Merkel told reporters G-20 leaders failed to agree on IMF resources to fight Europe’s debt woes.

Renewed risk aversion from the euro-zone crisis prompted dollar buying by offshore investors, Lourens Harmse, a Johannesburg-based currency trader at Absa Capital Ltd., wrote in an e-mailed note.

--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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