Bloomberg News

Ghana’s Cedi Weakens to Record as Gold Prices Wane: Accra Mover

June 11, 2013

Ghana’s cedi weakened to the lowest on record as falling gold prices reduced dollar supplies from miners and the central bank didn’t provide enough foreign currency to meet local demand.

The currency of Africa’s second-biggest producer of the precious metal depreciated 0.3 percent to 2.0075 per dollar as of 3:21 p.m. in the capital, Accra, the lowest since June 1993 when Bloomberg began compiling the data.

“The fact is that the central bank is not intervening enough,” Sadiq Abubakar, a currency trader at Accra-based International Commercial Bank Ltd., said by phone. “The inflows we get from mining companies are not coming because the price of gold is weakening.”

Adams Nyinaku, head of treasury at the Bank of Ghana, wasn’t available to comment, said a man who answered a call made to Nyinaku’s office and didn’t give his name.

Abubakar said importers are seeking dollars for raw materials, equipment and consumer goods. The central bank sold $250,000 to his bank today, equivalent to 12.5 percent of the demand received from clients, he said.

Spot gold prices have declined 18 percent this year, according to data compiled by Bloomberg. The metal dropped as much as 1.5 percent today and traded 0.7 percent lower at $1,376.76 an ounce.

To contact the reporter on this story: Moses Mozart Dzawu in Accra at mdzawu@bloomberg.net

To contact the editor responsible for this story: Vernon Wessels at vwessels@bloomberg.net


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