Ghana luring investors with short-term yields to bolster cedi
January 25, 2019
Ghana is offering higher rates on its three-month bills to attract local investors and support the currency amid concern about capital flight as developed-nation central banks tighten policy, according to SAS Finance Group.
The yield on 91-day Treasury bills, which climbed to the highest in nine months at the last sale on January 18, will probably rise even further as the authorities look for ways to make cedi assets more attractive to investors, Eli Keledorme, an Accra-basedanalyst at SAS, said by phone.
Yields on the securities have been increasing since the fourth quarter of 2018. The cedi weakened 8.4 per cent against the dollar last year, though its has stabilized after reaching a record low on December 19.
While inflation slowed to within the central bank’s target range of 6 per cent to 10 per cent last year, international reserves in the world’s second-biggest cocoa producer decreased to $6.4 billion at the end of October from