BoG Receives $235m At First Foreign Exchange Auction

BoG Receives $235m At First Foreign Exchange Auction

 

 

The Bank of Ghana (BoG) has on the Tuesday received a total of 144 bids amounting to $235.05 million at the first multiple-price Foreign Exchange forward auction for the first quarter of 2022. This was also against the proposed amount of $75 million offered by the central bank to also only authorised Foreign Exchange dealing

 

banks in the country. The bid amount at the first of six auctions to be held within the first quarter of 2022 was equivalent to 50 percent of the total $450 million the BoG intends to auction within the period. A 7-day tenor at a submitted rate range of ¢6.0350 and ¢6.0950 amounting to $125.3 million was the highest, with 58

 

 

bids made. This was followed by 50 bids for a 15-day tenor at a submitted rate range of ¢6.0405 and ¢6.1050, amounting to $73 million. Both 30 and 45-day tenors respectively have 32 and 4 bids submitted amounting to $33.5 million and $3.25 million respectively. Bids amounting to $4.55 million were regarded as invalid as

 

 

they did not meet the FX forward auction guidelines. In a statement signed by the Secretary of the Bank, Ms Sandra Thompson, the Bank indicated that it had accepted 50 bids across the four categories of tenors and at rate range of ₵6.0725 and ₵6.0850; ₵6.0850 and ₵6.1000; ₵6.1100 and ₵6.1247, and ₵6.1000 and then

 

 

₵6.1100. The statement also indicated that 20 bids were accepted for 7-day tenor amounting to $40.5 million, 17 bids accepted for 15-day tenor amounting to $23 million, 10 bids accepted for 30-day tenor also amounting to $8.75 million, and three bids accepted for 45-day tenor amounting to $2.75 million. The next auction is expected to take place on January 25, 2022, with the proposed amount still fixed at $75 million. It is

 

 

aimed at aiding price discovery, deepening the FX market, and reducing uncertainty on the future availability of the FX to meet the need of the Bank’s clients. This is in line with the Bank’s objective of periodically strengthening the local currency against the most common trading currencies especially the US dollar, through the release of foreign currencies into the FX market on a quarterly basis.