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Govt to realize almost 900 million cedi proceeds from last week’s bond issue
Posted on: 27-Aug-2012         Source: myjoyonline.com
The Bank of Ghana on behalf of government will today receive almost 900 million cedis as payment from investors who participated in last week’s bond issue.

The 300 million cedi five year bond which is to fund on- going road projects was oversubscribed by almost 300 percent with a little over 90 percent of the bids coming from foreign investors.

Government is optimistic the inflows would help stabilize the Ghana cedi.

Meanwhile, it appears predictions by managers of economy that the cedi will stabilize against the dollar in the last quarter of this year, might be realized earlier. JOY-BUSINESS checks on the interbank market indicate that the cedi has been recording some stability against the dollar over the past three weeks. But how sustainable could this be? An Investment Analyst with SIC Financial Services, Derrick Mensah has been speaking with JOY-BUSINESS.

“The cedi has seen its worse in terms of the rate of depreciation. If you consider the past few months you’ll realize that the rate of depreciation has been declining drastically. In May it was about 4.16 percent, in June about 1.6 percent, In July about 1.35 percent and as at last Friday it stood at 0.15 percent” he noted.

“So you could clearly tell that the Bank of Ghana’s interventions have yielded results and would continue. Also extent of foreign participation in the recently issued 5-year bond would is also expected to help stablise the cedi further” he added.

You needed 1 Ghana Cedi 93 pesewas to get a dollar from a commercial bank as at last Friday.