BoG raises $40m from forex auction
The Central Bank for the forex forward rates auction held on Tuesday, December 14, 2021, accepted $40 million bids submitted by bidders for the greenback.
The $40 million accepted bids were out of some of $161.95 million bids made by the various commercial banks at the auction.
In accepting the bids, the Bank rejected total bids amounting to $121.95 million, indicating an oversubscription of some 304 percentage points.
The oversubscription of the Bank of Ghana’s (BoG) forex auction has been the trend for some weeks now as businesses are now in dire need of the dollar particularly for imports for the Christmas festivities.
The high demand for the dollar is expected to put pressure on the cedi and cause it to depreciate against the major trading currencies especially against the American dollar.
Presently, the cedi boasts a 2.6 percentage points year-to-date depreciation rate against the dollar.
Bids were made for the 7 day, 15 day, 30 day and 45 day tenors.
Total bids submitted for the 7 day tenor amounted to $81.75 million of which the BoG accepted $18.75 million
For the 15 day, 30 day and 45 day tenors, bids made totaled $54.2 million, $20.25 million and $5.75 million respectively.
The BoG, for the 15 day, 30 day and 45 day tenors accepted bids totaling $12.5 million, $5.75 million and $3 million respectively.
No bids were made for the 60 day and 75 day tenors.
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 particularly importers and exporters.
Memo Fx Forward Auction Result No 0058 by Fuaad Dodoo on Scribd
