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RADP / Pulse Ghana  >  news  >  business

Cedi appreciates marginally over the issuance of 3-year bond

Berlinda Entsie

The three-year bond issued by government last week has caused the cedi to record some gains on the interbank market.

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For some days now the, the rather depreciating Ghana cedi has begun seeing some level of appreciation

The cedi which was trading at around, GHC4.80 around early March is now trading at around GHC4.60 pesewas.

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Market analysts also say the marginal stability can be attributed to the decision by some offshore investors to bring in some dollars to buy some cedis in preparation for the three-year bond auction.

The issuance of a three year bond closed on March 9. Government was able to attract a little over GHC1 billion and would pay a yield of 21.5 percent.

Deputy Finance Minister-designate, Kweku Kwarteng attributes the cedis' stability to investor response to policies outlined in the 2017 budget

"The policies in the budget have shown investors are convinced about government programs aimed at stabilizing the cedi"/

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Some have argued that more measures are needed to sustain this trend so the local currency can firmly stabilize against the dollar and major international currencies.

The trend if sustained could reduce cost of living in the coming days.

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Berlinda Entsie Berlinda Entsie Berlinda Entsie a reporter at Pulse.com.gh/bi/. She reports on all your business related issues and always ready to promote your business through amazing reportage.

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