Ghana’s Cedi, which is the world’s best-performing currency against the dollar this year, has recently extended its advance as investors await a Eurobond sale that will bolster the government’s reserves.
The currency of the world’s second-biggest cocoa producer has strengthened by 3.9% in 2020.
The country just concluded a series of meetings with international bond investors on Monday for a sale of $3 billion in Eurobonds.
Global financial and economic research experts add that the country’s currency has strengthened the most among more than 140 currencies.
The strengthening of the Cedi, is a remarkable turnaround from last year, when it unusually weakened by almost 13%.
With Ghana concluding a series of meetings with international bond investors for a sale of as much as $3 billionin Eurobonds, Bloomberg quotes financial experts as saying that the Cedi will further strengthen.
“With the impending Eurobond issuance, which is likely to increase foreign reserves, some buyers are betting that the cedi will strengthen further,” Faakye said.
Steve Opata, Head of Financial Markets at the Bank of Ghana, says that the Central Bank’s tight monetary stance is also supporting the Cedi.