The Ghana cedi fell further against the US dollar which has led to illiquidity on the interbank market with hardly any activity late last week. As reported in Ghana Politics & Security last week the cedi has declined steadily over the past few months, falling more than 11% this year, because of strong demand for the US$, in most part from local manufacturing and telecommunications firms. Three weeks ago the Bank of Ghana raised its policy rate to 14.5% in an attempt to stem the cedi's slide and also slackening the banks' net open position requirements - the difference between their assets and liabilities in a particular currency - to boost their foreign exchange flows to the market.
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