Bloomberg News

Ghana’s Cedi Weakens to Record Low as Importers Bought Dollars

November 25, 2011

Nov. 25 (Bloomberg) -- Ghana’s cedi weakened to the lowest on record against the dollar, extending declines for a fifth week, as importers bought dollars to prepare for upcoming holidays.

The currency of the world’s second biggest cocoa producer depreciated 0.6 percent to 1.6430 per dollar as of 1:22 p.m. in Accra, the capital, the lowest since May 31, 1994 when Bloomberg began compiling the data. The cedi has lost 1.7 percent against the dollar this week.

“This week the importers sought the dollars to pay for their imports they will sell during the Christmas season,” Chris Nettey, a currency trader at the local unit of Standard Bank Group Ltd. said in a telephone interview today.

The central bank has sold dollars in an effort to slow the cedi’s 9.6 percent depreciation this year. It sold $148.8 million this week and will limit the year-on-year decline to 5 percent by the end of December, Adams Nyinaku, head of treasury at the bank, said in a telephone interview today.

--Editors: Stephen Kirkland, Dulue Mbachu

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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