BoG offers $25m to forex dealers in April auction

The Bank of Ghana in its latest auction of forex, accepted $25 million in bids.

This represents 31.74% of the total amount of $78.75 million that forex dealers bid for.

In a report published by the central bank in controlling the supply of dollars, the BoG said a total of 108 bids were submitted in the latest forex auction which was carried out on Tuesday [April 7, 2020].

Dealers seeking foreign currency within the next seven days bid the highest number of 53.

This was followed by dealers who needed foreign currency in the next fifteen days with the number of bids reaching 29.

There was one bid each for dealers who require dollars within the next two months or more.

While the Bank of Ghana offered prices higher for the minimum bids quoted by the dealers, it offered relatively lower prices for the maximum bids quoted by the dealers.

For instance, bidders for the seven days quoted a minimum price of 5 cedis 50 pesewas and a maximum price of 5 cedis 77 pesewas.

But the Bank of Ghana offered a minimum price of 5 cedis 68 pesewas and a maximum price of 5 cedis 72 pesewas.

For the latest auction of forex, total amount of bids that were considered as invalid since they did not meet the guidelines, was $2 million.

The central bank introduced this forward auction of forex to control the amount of foreign currency in circulation.

According to the regulator, this is to stem the perennial depreciation of the cedi.