Ghana Cedi Slumps as Manufacturers Demand Dollars: Accra Mover

Ghana’s cedi depreciated the most in more than two weeks against the dollar as importers sought the U.S. currency to bring in raw material and goods to sell in West Africa’s second-biggest economy.

The currency of the world’s second-largest cocoa producer depreciated 0.6 percent to 2.19 per dollar by 1:14 p.m. in the capital, Accra, the most since Sept. 26 on an intraday basis. It earlier fell to 2.2025, the lowest on record, according to data compiled by Bloomberg.

“Demand for dollars is high from manufacturing, automobile and telecommunication companies,” Elvis Darku, head of fixed income trading at the Accra-based unit of Nigeria’s Access Bank Plc (ACCESS), said in an e-mailed response to questions.

The currency has weakened 13 percent this year as Ghana, Africa’s second-biggest gold producer, saw its earnings from exports of the metal drop almost 13 percent in the first eight months of the year, the Bank of Ghana said Sept. 18. Revenue from cocoa-bean shipments fell 21 percent, it said.

“We get major supplies from mining companies, but they have dwindled drastically due to falling gold prices,” Richard Dei-Tutu, a currency trader at CAL Bank Ltd. in Accra, said by phone.

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

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.