Ghana’s cedi appreciated for a second day as mining companies sold dollars and traders speculated the central bank’s first auction of five-year bonds since 2007 will boost demand for Ghana’s currency.
The currency of the world’s second biggest cocoa producer gained as much as 0.4 percent to 1.5042 per dollar, its strongest intraday level since June 7, according to data compiled by Bloomberg. It traded 0.2 percent higher at 1.5072 as of 1:26 p.m. in Accra, the capital.
The Bank of Ghana will offer 300 million cedis ($199 million) of five-year bonds on July 28, it said on its website.
“Currency traders took positions in anticipation that the bond auction on Thursday may weaken the dollar on offshore investor inflows,” Chris Nettey, a currency trader at Stanbic Bank Ghana Ltd., said in a telephone interview today. “Mining firms also sold the dollar today to finance their cedi- denominated activities.”
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