BoG accepts $40 million in bids for March FX forward auction
Dr Ernest Addison, Governor of the Bank of Ghana (BoG)
The Bank of Ghana accepted forty million dollars’ worth of bids in its latest auction of forex on Tuesday, March 10, 2020.
Read full article The accepted auction is $15 million lower than BoG’s previous FX sales a fortnight ago.
The Bank of Ghana, in October 2019 started its forward auction sales. The move allows foreign exchange dealers to make advance purchases of foreign currency to be supplied at an agreed rate later on.
BoG believes that this initiative will help in regulating the supply of foreign currency and to stabilize the cedi for some time.
Tuesday’s amount was over 50 percent lower than the total amount that banks bid for, during the auction period.
Banks bid for a total of 82,350,000 million dollars for periods spanning seven days to forty-five days.
This figure is higher compared to the 42.250 million dollars they bid for on February 25.
Though the submitted bids were high, the central bank still accepted forty million dollars.
Meanwhile, the minimum bidding rate offered by banks ranged between 5 cedis 28 pesewas and 5 cedis 37 pesewas.
Also, the maximum bidding rate quoted by the banks were between 5 cedis 37 pesewas and 5 cedis 45 pesewas.
A total of 1,600,000.00 dollars invalid bids were submitted this time around and this is higher than the 500,000 dollars recorded in the previous auction.
Below is the full FX forward Sales document
FX-FORWARD-AUCTION-RESULT-NO-0011.pdf https://drive.google.com
