Ghana’s cedi declined the most in more than five weeks as traders bought dollars to settle bills for goods they imported into West Africa’s second-biggest economy for holiday-season sales.
The currency of the world’s second-largest cocoa producer depreciated 0.5 percent to 1.9005 a dollar by 1:20 p.m. in Accra, the capital. That’s the biggest drop since Nov. 20, according to data compiled by Bloomberg.
“There’s demand on the market from the commerce industry,” Abubakar Sadiq, a currency trader at Accra-based International Commercial Bank Ltd., said by phone today. “Some of the companies imported the goods before Christmas and have started making payments.”
While the central bank sold dollars today, it wasn’t enough to meet the demand, which will probably continue until the end of January as the debts are paid, Sadiq said.
The Bank of Ghana, which sells the foreign currency at irregular intervals, may sell $10 million to lenders by the end of the day, Adams Nyinaku, head of treasury, said by phone.
The bank sold $25 million on Dec. 24, including $21 million for imports of liquefied petroleum gas, which is mainly used for cooking, he said.
To contact the reporter on this story: Moses Mozart Dzawu in Accra at email@example.com
To contact the editor responsible for this story: Vernon Wessels at firstname.lastname@example.org