3-year bond to boost the cedi’s performance against dollar backposted on Wed, 29 May at 11:58
The bond which is the third in a series since January is to roll over maturing papers as well as support government’s budget.
Financial players believe the cedi could take a breather ahead of bond auction tomorrow which is open to offshore investors.
The cedi has fallen by over 2 percent against the dollar so far this year.
Sammy Ampah of Gold Coast Securities told Citi Business News, the 3 year bond issue will boost the cedi’s performance against dollar.
He explained that “if you look at history, bond issuance directly has an effect on the local currency however, it happens that the demand for the dollar sometimes out stretch the supply. We are just hoping because this money we are trying to raise from the international market is quite huge. It certainly will cushion the economy very well.”
According to him, the “three-year bond has been sort of a cushion for the cedi am telling you, if it had not been the bonds that we have issued these past years, we may have had the cedi really depreciating against the dollar. The bonds have really helped the cedi value significantly.”
By: Vivian Kai Mensah/citifmonline.com/Ghana