Cedi hits new all-time low on dollar demand

Bank of Ghana releases 218.5 million dollars to stem cedi depreciation?

The Ghana cedi currency plunged to an all-time low against the dollar on Monday as interbank demand for the greenback continued to outstrip inflows including Central bank supplies, traders said.

The cedi opened Monday's trading around 1.7125/50 and had slumped across the resistance 1.72 barrier by midday, said Christopher Nettey of Stanbic Bank.

"It's an all-time loss," Nettey said, adding that the situation demanded "a sustained Central Bank intervention" to revive investor confidence in the stability of the local currency.

The local currency held steady on Friday at 1.7050/75 on the back of a late dollar supply from the Central Bank, following three consecutive losses earlier in the week.

Barclays Bank Chief Trader Kobla Nyaletey said despite a significant supply from the Central Bank late on Friday, the current pressure on the cedi could persist throughout the week due to unmet forex demand in the market.

"We will need the Central Bank to do more volumes to ease the pressure on the Cedi," Nyaletey said.

Ghana's treasury chief Adam Nyinaku told Reuters the Central Bank had been in the market with significant volumes of dollars last week.

"We went heavily into the market last week but unfortunately we didn't not see the expected results," he said adding that the Bank pumped in more than $200 million, including direct bulk import lifting.

He said the Central Bank had made some observations and would soon outline a strategy to correct the situation, in addition to regular dollar supplies.