Nov. 15 (Bloomberg) -- Ghana’s cedi will rise to the highest in eight months by the end of the year as measures put in place by the central bank to support the currency continue, according to the Finance and Economic Planning Ministry.
The cedi’s depreciation for 2012 will be 11 percent, the ministry said in an e-mailed statement today. That will see the currency trade at 1.8421 a dollar, based on calculations made using data compiled by Bloomberg. The cedi last traded at this level on April 23, according to the data.
“Our forecast is based on the measures implemented by the central bank and the impact so far,” Abdul Hakim Ahmed, a spokesman at the ministry, said by phone today. “The measures will continue to the end of the year.”
The Bank of Ghana increased its policy interest rate by 2.5 percentage points this year to 15 percent and held it at that level for a second straight time yesterday. The central bank also asked lenders to keep more reserves in cedis and reintroduced Treasury bills with maturities of 30, 60 and 270 days to get extra cedis off the local market. It also accepted higher yields on 91- and 182-day offers.
The cedi, which fell 15 percent to the dollar in the first half of the year, has since appreciated 3.2 percent. It gained 0.1 percent to 1.8788 a dollar by 12:10 p.m. in Accra.
The currency of the second-biggest economy in West Africa will strengthen 1 percent in the last quarter of this year, according to the ministry.
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