BoG dollar auction: Demand outstrips supply by $72.2m as $1 hits ¢10.92

Demand for the US dollar fell marginally again, according to the latest auction of the American ‘greenback’ by the Bank of Ghana (BoG).

Data from the Central Bank indicates that demand exceeded supply by $75.25 million in the latest auction.

This is compared with $82.75 million recorded a month past.

According to the result of the sale of dollars through the Forex Forward Rates Auction to dealers, the Bank of Ghana was only able to supply $25 million to the dealers, largely the banks.

However, the bids submitted for the purchase of the American ‘greenback’ was estimated at $100.25 million, lower than the $107.75 million recorded a month ago (August 23, 2022).

Per the results, the high demand for the US dollar keeps growing but marginally.

However, the expected first tranche of the $1.13 billion cocoa syndication loan will help boost the supply of the American ‘greenback’ to some extent.

$53.5 million for the seven-day tenor was the highest bid by the dealers, followed by $30.75 million for the 15-day tenor.

The 30-day tenor received bids worth $12.0 million, whilst the 45-day tenor received bids amounting to $2.75 million.

The 60-day tenor also received bids, amounting to $750,000.

There was, however, no bid for the 75-day tenor.

The highest number of bids submitted by the dealers was for the 7-day bill in which 59 bids were made, but only 14 bids were accepted

The least was the 60-day bill whereby only one bid was submitted.

1 dollar hits ¢10.92

Meanwhile, the fast pace of the depreciation of the cedi continued as the dollar hit ¢10.92 on October 6, 2022.

Checks by Joy Business indicate that most forex bureaus within the capital city of Accra are selling a dollar for an average of ¢10.88.

Whilst, others sold one US dollar for ¢10.95, the American ‘greenback’ went for ¢10.88.

Joy Business understands the recent action by the Bank of Ghana descending on some forex bureaus engaged in illegal transactions and some black market operators have had little impact.

Cedi loses 40% value to dollar in nine months of 2022

The local currency as of September 30, 2022, had lost value of 40% to the dollar, ranking it as the second worst performing currency in the world in the 147th position, according to Bloomberg.

This decline in the local currency against the American currency is the worst in over three decades.

The performance of the cedi also ranked it as the worst among the 30 top-performing currencies on the African continent.