BOG set to auc­tion $715m in 2020

The Punch - - PERSONAL BANKING -

THE Bank of Ghana is set to auc­tion $715 in For­ward For­eign Ex­change Auc­tions through­out 2020. Jan­uary, Fe­bru­ary and March 2020 are the months with the high­est ex­pected auc­tions of $80m each.

In ac­cor­dance with the For­eign Ex­change For­ward Auc­tion guide­lines is­sued on Septem­ber 23, 2019, the cen­tral bank said bids were in­vited as per the pre­scribed for­mat to pur­chase/sell US dol­lar against Ghana cedi separately on each auc­tion date.

The de­ci­sion to auc­tion such an amount of US dol­lars was ex­pected to help sal­vage the peren­nial de­pre­ci­a­tion of the cedi.

Mean­while, the cedi was pre­dicted to de­pre­ci­ate by about 13 per cent to the US dol­lar in 2019.

BOG in Oc­to­ber, be­gan a For­eign Ex­change For­ward Rate Auc­tion lim­ited to seven-day, 15-day, 30-day, 45-day, 60-day and 75-day tenors.

In ad­di­tion to the auc­tion guide­lines, all au­tho­rised For­eign Ex­change Dealer Banks were to com­ply with the pro­vi­sions of the Code of Con­duct for the In­ter­bank For­eign Ex­change mar­ket in Ghana.

Since the in­tro­duc­tion For­eign Ex­change For­ward Rate Auc­tion, it had been record­ing a sig­nif­i­cant over­sub­scrip­tion.

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