Ghana’s cedi advanced the most against the dollar since February as speculation increased that dollar inflows will improve after the government sells its Eurobond.
The currency rose as much as 11 percent to 3.49 per dollar earlier and was trading at 3.55 at 1:33 p.m. in the capital, Accra. The currency has gained 23 percent since the International Monetary Fund said the government was on track to meet its budget deficit target on June 30.
“A lot of importers believe that throughout the third quarter the cedi is going to be quite stable so there is no rush for dollars,” Sampson Aglikoh, managing director of Accra-based money manager InvestCorp Ltd., said by phone Thursday. “Demand for dollars has been on the low.”
The cedi has reversed the worst decline in sub-Saharan Africa this year as the IMF issued its review and the government said it plans to sell a Eurobond later this year that would boost the amount of dollars coming into Ghana. Ghana is on track to report a budget gap of 7 percent of gross domestic product this year, lower than the previous estimate of 7.5 percent, the IMF said on June 30.