BoG receives $235m at first foreign exchange auction
The Bank of Ghana (BoG) has last week received a total of 144 bids amounting to $235.05 million at the first multiple-price Foreign Exchange (FX) forward auction for the first quarter of 2022. This was against the proposed amount of $75 million offered by the central bank to 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 per cent of the total $450 million the BoG intends to auction within the period. A 7-day tenor at a submitted rate range of GH¢6.0350 and GH¢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 GH¢6.0405 and GH¢6.1050, amounting to $73 million. Both 30-day 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 GH¢6.0725 and GH¢6.0850; GH¢6.0850 and GH¢6.1000; GH¢6.1100 and GH¢6.1247, and GH¢6.1000 and GH¢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 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.