ACCRA: Ghana's cedi rose against the dollar on Friday, adding to recent gains triggered by a series of oversubscribed government bonds, traders said.
The Bank of Ghana had held several auctions for three-year and five-year government bonds between February and August, all of them oversubscribed, bringing in fresh greenback supplies from foreign investors.
On Friday, the local currency rose 0.73 percent to 1.9075/1.9100 to the greenback at 1230 GMT, Barclays Bank trader Jacob Brobbey told Reuters. It opened day at 1.9215/40.
"The market may enter a technical rally mood with the next key level being 1.9000," Brobbey told Reuters.
The currency of the gold and oil exporter, which had slumped more than 20 percent versus the dollar earler this year, began its recovery in July following liquidity tightening by the central bank.
The cedi ended August at 1.9325, up 1.35 percent from the month's open of 1.9585 - the first monthly gain this year. Year to date, the local unit is down 16.8 percent.
The West African nation will hold presidential and parliamentary elections in December and there is investor uncertainty over spending by the government in an election year.
On Tuesday, President John Mahama assured that the government was committed to containing inflation and keeping spending within limits.
The Bank of Ghana's monetary policy committee is expected to announce a rates decision next week.
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