Ghana’s Cedi Weakens for Third Day on Greece, Europe Concern
Ghana’s cedi weakened for a third day as concern Europe’s debt crisis will worsen prompted offshore investors to buy dollars.
The currency of the world’s second-biggest cocoa producer depreciated as much as 0.2 percent to 1.6042 per dollar before paring the loss to 1.6019 per dollar as of 1:26 p.m. in Accra, the capital, according to data compiled by Bloomberg.
“The cedi has weakened as off-shores buy U.S. dollar on the back of renewed risk aversion from the euro-zone crisis,” Lourens Harmse, a Johannesburg-based currency trader at Absa Capital Ltd. said in an e-mailed comment today. “I expect demand to be firm going into year-end.”
Nobody was available to comment at the central bank’s treasury department, said a woman who answered a telephone call and declined to be identified.
European leaders led by Germany and France yesterday cut off financial aid for Greece, warning the country will surrender all European aid if it votes against a bailout package agreed last week. Greek Prime Minister George Papandreou announced earlier this week he planned to hold a referendum on the bailout.
To contact the editor responsible for this story: Antony Sguazzin at email@example.com.