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Ghana offers higher rates on its three-month cash vouchers to attract local investors and support the currency against capital flight concerns, as central banks in developed countries strengthen their policies, according to the SAS group Finance.
The 91-day Treasury bill yield, which had reached its highest level in nine months at the last sale on January 18, is expected to increase further as the authorities look for ways to make badets in cedi more attractive to investors. the investors, Eli Keledorme one based in Accra badyst at SAS, said by phone.
Equity yields have been rising since the fourth quarter of 2018. The cedi has weakened. 8.4 percent against the dollar last year, although his it's stabilized after reaching a record on December 19th.
Inflation slowed to fall within the central bank's target range of 6 percent at 10 percent Last year, international reserves of the world's second-largest cocoa producer declined to $ 6.4 billion at the end of October, up from $ 6.9 billion a year earlier, announced the central bank in December.
"Higher rates of Treasury bills encourage investors to demand more badets cedis", Keledorme I said. "The 91-day rate will continue to rise to cushion the cedi and eliminate inflation. If the cedi depreciates, it will lead to higher inflation, against which the authorities keep themselves ".
Ghanaian currency was little changed at 4.9955 for a dollar at 1:18 pm. in the capital.
Courage Martey, an economist at Databank, said this month that the central bank would probably leave its key rate unchanged for the fourth time on Jan. 28.
Samuel Longdon, a rate trader at Fidelity Bank Ltd. in Accra, said in an email that non-resident investors were reducing their exposure to emerging market debt. "It was only a matter of time for this to be felt in the short part of the curve."
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