Controlling forex supply: BoG to auction additional $125m

The Bank of Ghana is seeking to auction a total of $125,000,000 for the fourth quarter of 2019; spanning October to December.

The exercise is expected to be carried out in five tranches covering the three months.

For each tranche, the Central bank is seeking to auction $25,000,000.

A notice by the Bank of Ghana to all authorised dealers said the move was in accordance with the Foreign Exchange Forward Auction Guidelines issued on 23rd September, 2019.

For every auction date, bids will be received between 10am and 11:30am.

Opening and review of bids will take place between 11:30am and 12:30pm while announcement of results will take place at 2pm.

On October 1, 2019, the Bank of Ghana commenced the forward auction of forex where it sought to auction $50,000,000.

Meanwhile, banking consultant, Nana Otuo Acheampong in an earlier interview with Citi Business News said he is confident that the Bank of Ghana’s forward sales of forex should help stabilise the cedi for some time.

He explained that the ability of traders to access the foreign currency would also reduce any speculation which often distorts the market.

“The fluctuation has partly been caused by the uncertainty where all of a sudden people are making payments which they have not budgeted for in foreign currency. So they have to rush for the cedi equivalent and that time the exchange rate might have changed and then they find themselves that they are buying the forex at any rate that is available. But this one is a way of bringing certainty,” he remarked.