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Business News of Saturday, 22 September 2012

Source: Reuters

Cedi Dips On Corporate Dollar Demand

Ghana’s cedi declined against the dollar for a third time in a row on Wednesday on revived greenback demand by local firms for their imports amid insufficient supply, traders said.

The cedi traded at 1.9070/95 at 1425 GMT, down 0.45 percent from the day’s open.

Barclays Bank Ghana trader Jacob Brobbey said there was the likelihood of the local unit slipping further, unless supply improved from traditional sources such as central bank and the mining sector.

“The 1.9100 resistance is very likely to cave in this week if the mines continue to stay off,” Brobbey told Reuters.

The cedi rebounded in late July after plunging nearly 20 percent versus the dollar in the first half of the year, mainly due to dollar-craving by local firms importing goods to fuel the growing economy.

“The GHS has lost some of its recent gains this week mainly on (dollar) supply dearth and improved demand,” another trader, Christopher Nettey of Stanbic Ghana, said.