• Login
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
  • Home
  • News
    • General
    • Political
  • Economy
  • Business
    • Agribusiness
    • Aviation
    • Banking & Finance
    • Energy
    • Insurance
    • Manufacturing
    • Markets
    • Maritime
    • Real Estate
    • Tourism
    • Transport
  • Technology
    • Telecom
    • Cyber-security
    • Cryptocurrency
    • Tech-guide
    • Social Media
  • Features
    • Interviews
    • Opinions
  • Reports
    • Banking/Finance
    • Insurance
    • Budgets
    • GDP
    • Inflation
    • Central Bank
    • Sec/Gse
  • Lifestyle
    • Sports
    • Entertainment
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video
No Result
View All Result
No Result
View All Result
NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
No Result
View All Result
Home Economy

Forex market expects cedi appreciation

4 years ago
in Economy, highlights, Home, home-news, latest News, Markets
2 min read
0 0
0
75
VIEWS
Share on FacebookShare on TwitterShare on Linkedin

At the latest foreign exchange forward auction held in late March, the Bank of Ghana put up another US$50 million on sale for future delivery across tenors ranging from seven to 75 days.

Most notably, the slump in demand at the previous forward auction – which saw demand fall short of the amount offered for the first time since forward auctions were introduced in late 2019 – was not repeated; at the most recent auction US$80.5 million was demanded, this being 1.61 times the US$50 million offered and actually sold.

Crucially however the bids made suggest that the resumed high demand was the result of increased need for forex as soon as possible rather than speculative worries over its availability going forward. Indeed, the highest bids were for the shortest future delivery tenors, indicating that forex users and the banks bidding on their behalf actually expect exchange rates to fall marginally over the coming weeks rather than rise.

Currency market analysts suspect that these bid rates were influenced by expectations of higher availability of forex imminently as Ghana was preparing to do its largest Eurobond issuance – of up to US$5 billion – since it began accessing the international capital market in September 2007.

Eventually however, although bond investors offered US$6 billion in all, government only accepted US$3 billion worth of offer0s, asserting that the other offers were with coupon rates that were unacceptably high. This itself though indicates that government is comfortable with its gross international reserves position and its capacity to fund the forex market, both the spot market and that for future delivery.

Altogether there were 83 bids, of which the BoG accepted 52. Instructively more than half of the bids – 43 – were for delivery in seven days, of which 26 bids were accepted. In consonance with this those bids cumulatively added up to US$47.5 million – again more than half of total cumulative demand – of which the central bank accepted US$29.75 million.

The number of bids, and the cumulative amounts bid for declined in line with the increasing length of the delivery time, with only two bids, for US$1.0 million being made for delivery in 60 days, both of which were accepted. There were 25 bids, adding up to US$22.0 million for delivery in 15 days of which 14 bids, for US$11.5 million, were accepted, There were nine bids, totaling US$7.5 million for delivery in 30 days, of which six bids, for US$5.25 million in all, were accepted. All for bids for delivery in 45 days, amounted to US$2.5 million, were accepted.

RelatedPosts

Europe’s Energy Future Hinges on Global Powers

US Companies Cut Investments in China to Record Lows, Here’s Why

How AI is Rewriting and Enhancing Water Risk Management

Instructively though no bids were made at all for delivery in 75 days. The overall trend suggests that bidders require forex as soon as possible, indicating rising business confidence which is translating into plans for increased business volumes.

Most interestingly, this immediate effective demand is despite the indicated expectations of most bidders that the cedi will appreciate marginally against the dollar over the coming weeks, ostensibly in response to increased supply of forex as part of the impending Eurobond proceeds become available; or simply that the resultant increase in Ghana’s gross international reserves arising from the issuance will boost currency market confidence in the cedi’s exchange rate.

Bids for delivery in seven days ranged between GHc5.6900 and GHc5.7419 to the dollar while bids for delivery in 45 days ranged between GHc5.6894 and GHc 5.7125 and for 60 days, between GHc5.6900 and GHc5.6942.

Source: goldstreetnewspaper
Tags: Bank of Ghanaforeign exchange forward auctiongross international reserves positionInternational Capital Market
No Result
View All Result

Highlights

SheFarms Broiler Edition Kicks Off in Greater Accra

PharmAccess Ghana, Healthcare Federation of Ghana sign SafeCare License Agreement; to use Newest ISQua-Certified Version 5

Tanzania Sink Burkina Faso to Delight Home Crowd In TotalEnergies CHAN 2024 Opener

GFA Set To Release 2025/26 Premier League Fixtures On Monday August 4

Leclerc Claims Stunning Pole Position as McLaren Struggles in Changing Winds

Nigeria Losing Battle Against Hunger as Food Inflation Persists

Trending

Features

Europe’s Energy Future Hinges on Global Powers

August 3, 2025

Europe's Energy Future Hinges on Global Powers The European Union’s drive to replace Russian energy imports within...

US Companies Cut Investments in China to Record Lows, Here’s Why

August 3, 2025
AI. Circuit board. Technology background, Central Computer Processors CPU concept..

How AI is Rewriting and Enhancing Water Risk Management

August 3, 2025

SheFarms Broiler Edition Kicks Off in Greater Accra

August 3, 2025

PharmAccess Ghana, Healthcare Federation of Ghana sign SafeCare License Agreement; to use Newest ISQua-Certified Version 5

August 3, 2025

Who we are?

NORVANREPORTS.COM |  Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World

NorvanReports is a unique data, business, and financial portal aimed at providing accurate, impartial reporting of business news on Ghana, Africa, and around the world from a truly independent reporting and analysis point of view.

© 2020 Norvanreports – credible news platform.
L: Hse #4 3rd Okle Link, Baatsonaa – Accra-Ghana T:+233-(0)26 451 1013 E: news@norvanreports.com info@norvanreports.com
All rights reserved we display professionalism at all stages of publications

No Result
View All Result
  • Home
  • Business
    • Agribusiness
    • Aviation
    • Energy
    • Insurance
    • Manufacturing
    • Real Estate
    • Maritime
    • Tourism
    • Transport
    • Banking & Finance
    • Trade
    • Markets
  • Economy
  • Reports
  • Technology
    • Cryptocurrency
    • Cyber-security
    • Social Media
    • Tech-guide
    • Telecom
  • Features
    • Interviews
    • Opinions
  • Lifestyle
    • Entertainment
    • Sports
    • Travel
    • Environment
    • Weather
  • NRTV
    • Audio
    • Video

Welcome Back!

Login to your account below

Forgotten Password?

Create New Account!

Fill the forms bellow to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
NORVANREPORTS.COM | Business News, Insurance, Taxation, Oil & Gas, Maritime News, Ghana, Africa, World
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.