Forex Auction: BoG to sell $350m to authorised dealers in Q2 2022
Some $350 million dollars is projected to be sold out to authorised dealers in the second quarter of the year.
According to the Bank of Ghana, the said amount is going to be sold at the Foreign Exchange Forward Auction in accordance to its guidelines.
The move by the Central bank is to boost the supply of dollars to help improve the stability of the local currency.
The Central Bank noted that some $150 million is expected to be sold in May 2022, while $100 million each will be sold in April 2022 and June 2022 respectively.
The Bank of Ghana further called for the invitation of bids as per the prescribed format to purchase the US dollars against the cedis separately on each auction date.
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The Central Bank said it will publish an auction calendar for the Foreign Exchange Forward Auction on a quarterly basis.
Also, the calendar will be published one week preceding the next quarter on the Bank of Ghana website.
Meanwhile, Economist and Finance Lecturer, Professor Godfred Bokpin, says the Bank of Ghana cannot not be blamed for the recent free fall of the cedi.
According to him, managers of the fiscal policy must take the responsibility and up their game to keep the economy buoyant.
Speaking at a recent round table forum organised by the Institute of Economic Affairs, Professor Bokpin said fiscal policy has become a source of macroeconomic instability, thus undermining the effectiveness of monetary policy in inflation targeting.
“often times our minds go to Bank of Ghana when we mention depreciation of the cedi, but it is not the Bank of Ghana’s fault largely because fiscal policy has become the main source of macroeconomic instability, thus undermining the effectiveness of monetary policy”.
“To that extent, what we are doing is more or less to pursue monetary policy as a subordinate to fiscal policy rather than it being complementary”, he stated.
