ACCRA (Reuters) – Ghana’s cedi fell further against the dollar on Monday due to high demand for the dollar from local firms as the interbank market continued to struggle from a lack of liquidity, traders said. Ghana’s local unit has fallen steadily all year and the interbank market has been dormant for two weeks. The government said last week it expected the cedi’s slide to end by mid-May after it announced several measures to stabilise the currency. Barclays Bank Ghana chief trader Kobla Nyaletey said there was a brief trading session on Monday during which the cedi fell to 1.8730/55 from an open of 1.8625/50.
“The interbank dollar-cedi market is still struggling to return to life with only few traders on the market,” he said. “We closed early (on Monday) as market liquidity is still poor.”
Another trader who asked not to be named told Reuters that the persistent lack of liquidity made it difficult to gauge the market.
“Although we’ve seen a little (fall in the cedi) today between the open and closing … I cannot use that as a true reflection of the market. Illiquidity is still high,” the trader said.
(Reporting by Kwasi Kpodo; Editing by David Lewis and Pravin Char)