Bloomberg News

Ghana Cedi Fell for 5th Day on Strong Dollar Demand: Accra Mover

March 13, 2012

Ghana’s cedi weakened for the fifth straight day to the lowest in more than seven weeks as telecommunication and manufacturing companies bought dollars to import equipment and raw material.

The currency of the world’s second-biggest cocoa producer depreciated 0.4 percent to 1.7290 per dollar as of 2:37 p.m. in Accra, the capital, according to data compiled by Bloomberg. A close at this level would be the weakest since January 20.

The cedi is weaker on account of “stronger demand” from companies, Jacob Brobbey, a currency trader at the Ghanaian unit of Barclays Bank Plc, said by phone today. “Telecommunication and manufacturing firms were lead buyers to meet equipment and raw material requirements.”

MTN Group Ltd. (MTN)’s unit in Ghana will invest $134 million this year to expand infrastructure, Accra-based Joy FM reported citing Chief Executive Officer Michael Ikpoki.

The central bank’s dollar offering to boost supply could not meet demand on the market, Chris Nettey, a currency trader at the Ghanaian Unit of Standard Bank Group Ltd. said by phone. “General demand is picking up.”

To contact the editor responsible for this story: Antony Sguazzin at asguazzin@bloomberg.net.


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