BOG set to auction $715m in 2020
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.