Forex Auction: BoG rejects $214 million bids from buyers
The Bank of Ghana (BoG) for its forex forward rates auction held on Tuesday, January 25, 2022, rejected a total of $214.25 million bids submitted by banks, importers, exporters and other persons and businesses that have need of the greenbuck for their transactions.
The rejected $214.25 million was out of a total $289.25 million submitted by the buyers – banks, importers and exporters.
The Central Bank only accepted $75 million out of the total bids made.
The bids were made for the 7 day, 15 day, 30 day, 45 day and 60 day tenors.
Total bids submitted for the 7 day tenor amounted to $151 million of which the BoG accepted $36.5 million.
For the 15 day, 30 day and 45 day tenors, bids made totaled $94.75 million, $38 million and $4.5 million respectively.
The BoG, for the 15 day, 30 day and 45 day tenors accepted bids totaling $26.75 million, $9 million and $1.75 million respectively.
Bids made for the 60 day tenors amounted to $1 million with government accepting all bids made.
No bids were made for the 75 day tenors.
Read: Ghana must boost production capacity to deal with rising inflation rate – World Bank
Bank of Ghana sets $450m target for Q1 2022
The Bank of Ghana [BoG] has set a forex auction target of $450 million for the first quarter of 2022.
The $450 million to be auctioned from January 11, 2022 to March 3, 2022, will see the Central Bank auction an amount of $75 million every week.
Announcement of the auction target is per the Bank’s Q1 2022 Auction Calendar for Foreign Exchange Forward Auctions.
Receipt of bids for dollars by the BoG from primary dealers, will be between 9.30am and 10.30am on the date of the auction with the auction results announced at 3.00pm on the date of the auction.
The BoG for the year 2021 set aside some $775 million for its forex forward auction programme.
The BoG’s forex forward auction programme is to help govern the conduct of forex auctions on the interbank foreign exchange market, deepen the forex market and reduce uncertainty on the future availability of dollars to meet the forex need of importers and exporters.
