Ghana cedi hits record low

Ghana’s currency, the cedi hit a record low on Tuesday.

According to Reuters, analysts say that this is mainly due to global pressures as investors continued to exit emerging-market assets.

A currency trader at a major lender in Accra told Reuters that: “It is a combination of emerging market assets sell-off pressure and unmet corporate (dollar) demand.”

The currency which has weakened since the start of May got to 4.8250 to the dollar on Tuesday.

Cumulatively, the local unit depreciated 5.3 percent in the first six months, compared to 3.3 percent in the first half of last year.

Last month, the Bank of Ghana said that it had significantly increased its weekly dollar sales to banks in support of the local currency.

The bank’s treasury did not respond to Reuters’ request for comment on Tuesday.

Ghana, which exports cocoa, gold, and oil, is in the final year of a $918 million credit deal signed in 2015 with the International Monetary Fund to reduce the budget deficit, inflation, and debt and to stabilise the local currency.