The Government this week issued a stern warning to speculators and unscrupulous businesses for creating an artificial shortage of foreign currency, especially the United States Dollar thereby causing its unprecedented appreciation against the Dalasi.
As a first step, a moratorium has been placed on shipping of US Dollars out of the country with possible exception for essential importation. The local currency over the last few weeks has been under severe pressure.
The Dalasi which hitherto had been relatively stable has “year-to-date” depreciated by 11.04% against the Dollar in the parallel market.
Dalasi Interbank Mid Exchange Rates
Dollar 29.25
Pound 42.25
Euro 36.25
CFA 280.00
Parallel Mid Exchange Rates
Dollar 31.25
Pound 45.50
Euro 38.00
CFA 285.00
Yields move in different directions
This week saw a reversal of the downward trend in the yields of the 91-day and 182-day bills experienced by over the last six weeks.
Dropping to low of 8.82% at last week’s auction, the 91-day bill was up by 55bps to close the week at 9.37%. The 182-day bill was up 25bps to 10.45%.
The 91-day (s/s) and the 1year note were however down 18bps and 6bps to close at 10.12% and 12.80% respectively. We anticipate yields to edge northwards at next week’s auction. The amount on offer D270million next week is more than double what was offered this week.
