The Minister for Finance, Dr. Kwabena Duffour is optimistic that inflows from yesterday?s oversubscribed five year bond issue would help stabilize the cedi.?The bond was oversubscribed by a record high of over 300 percent.?

Whilst Government sought to raise 300 million Ghana cedis, it received a little over one billion Ghana cedis from investors.

It however accepted almost 900 million from investors and returned the rest.?The bond will have a yield of 23 percent as returns for investors, though some wanted 32 percent. The subscription represents a record interest shown by investors in a government bond for long while.

About 90 percent of the bids came from foreign investors.

According to Dr. Duffour this is a sign of continued confidence in the economy despite concerns about the country?s fiscal position.

It is also an indication that the oversubscription is a sign of a higher yields offered investors in the economy.


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