ACCRA (Reuters) - The Ghana cedi extended its gains against the US dollar on Thursday as offshore investors scrambled for the local unit ahead of a three-year bond issue next week, traders said.
The cedi hit a previous three-month high against the greenback on Wednesday after the government announced a 3-year, 320 million cedi bond open to foreign investors.
Christopher Nettey from Stanbic Bank quoted the cedi-dollar at 1.4965/90 at 1114 GMT, up from 1.4975/1.5000 at the start of the session. The currency closed at 1.4985/1.5010 on Wednesday.
"The offshore investor interest is still strong. We could potentially see the central bank coming onto the market to buy some of the dollars," Nettey said, referring to potential efforts to cool the market ahead of the auction on April 27.
Nettey estimated the 320 million cedi bond would be oversubscribed and likely produce a 12.5-13 percent yield.
"There are still some dollars to be sold but I don't expect it to go below 1.4980 today," said Biggles Amponsah from Access Bank. "The cedi will have the upper hand this week and the early part of next week."
Jacob Brobbey from Barclays Ghana said the cedi has appreciated 0.89 percent week-to-date following the announcement of the bond on Tuesday.
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- Ghana cedi hits 3-month high ahead of bond
- Ghana to issue 3-year bond next week - Bank of Ghana
- Ghana Currency to Remain Stable Through Next Week, Barclays Says
- Ghana cedi holds gains against dollar
