Dollar auction by BoG oversubscribed 167.5% as demand for greenback surges
Demand for dollar by banks, businesses and particularly importers and exporters has seen a huge increment over the past weeks.
The rising demand for the greenback by banks, businesses exporters and importers is evidenced by the recent subscription of the Bank of Ghana’s (BoG) dollar auction by 167.5 percentage points.
The Central Bank in its forex forward rates auction on Tuesday, September 22, met its target of auctioning $50 million to bidders for the American dollar.
The $5O million was however out of a total of $133.75 million bids submitted by banks, importers, exporters and businesses that have need of the American dollar for their transactions.
In accepting the $50 million bids made, the BoG rejected bids to the tune of $83.75 million made by buyers.
Bids by buyers 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 $76.5 million of which the BoG accepted $25.5 million.
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For the 15 day, 30 day, 45 day and 60 day tenors, bids made totaled $42 million, $12.25 million, $1.5 million and $1.5 million respectively.
The BoG, for the 15 day, 30 day, 45 day and 60 day tenors accepted bids totaling $19.75 million, $3.25 million, $1 million and $500,000 respectively.
No bids were made for the 75 day tenor.
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 banks, importers, exporters and other businesses.
The high demand for the dollar is believed to be due to the need for imports of goods by importers ahead of the Christmas festivities. This is however, expected to result in the further depreciation of the cedi.
Peruse details of the forex forward auction below:
Fx Forward Auction Result No 0050 by Fuaad Dodoo on Scribd
