Ghana’s cedi weakened to the lowest on record against the dollar as investors bought the U.S. currency to send proceeds from cashed-in bonds overseas.
The currency of the world’s second-biggest cocoa producer depreciated 0.4 percent to 1.97 per dollar by 3 p.m. in the capital, Accra, the lowest since at least June 1997, when Bloomberg began compiling the data, and a fifth day of declines.
“Offshore investors sold part of their bond investments today,” Chris Nettey, a currency trader at the local unit of Standard Bank Bank Group Ltd., said by phone. “That part of the market was very calm, but all of a sudden, we started seeing activity there,” he said.
The cedi has weakened 3.3 percent this year, the worst performer against the dollar in West Africa, after a 14 percent slide in 2012 prompted the central bank to take measures including boosting sales of Treasury bills to remove currency from the market.
The benchmark 91-day rate, the second-highest in sub-Saharan Africa after Malawi, fell less than one basis point to 22.97 percent at the latest auction on April 19. Yields on Ghana’s $750 million Eurobonds due October 2017 dropped two basis points, or 0.02 percentage point, to 4.738 percent.