The Bank of Ghana has rolled out a new platform that is to ensure transparency in the foreign exchange trading among banks.

This platform which is known as the Refinitiv Matching is also expected to help in pricing cedi for forex trading.

The move by the Bank of Ghana is part of several efforts aimed at stabilizing the cedi.

Launching the new platform, Governor of the Bank of Ghana Dr Ernest Addison urged all banks in the country to get on board.

Dr Addison said, “The adoption of this platform is a key step for deepening the local FX market and we, therefore, expect full adoption from every bank. The Bank would in the future approve granting functionality permission on this platform to other relevant stakeholders such as the Bulk Oil Distribution Companies (BDCs) and mining firms that the Bank of Ghana considers important in the foreign exchange market.”  

He added, “I expect this platform to play an effective role in further transforming the interbank market into a deeper, liquid and a more efficient one which will in turn effectively support the central bank’s mandate of price stability and financial stability”.

Dr Addison said, “Over the years, the Bank of Ghana has been implementing FX market reforms to enhance transparency, improve price discovery, and increase the availability of FX hedging products. Ultimately, a deeper FX market in the context of a flexible exchange rate regime and a stable inflation environment will increase the resilience of the Ghanaian economy against external shocks.”

“It is within this context that in February 2019 and October 2019, the Bank introduced the Ghana interbank market rules and forward FX auctions respectively,” he added.

The Refinitiv Spot Matching platform is a trusted primary FX market platform with unique features designed to support an order book that ensures back-to-back trading with firm prices in a transparent fashion to encourage genuine trading interest.

The Bank of Ghana has adopted the Refinitiv’s Spot matching platform as the market standard for interbank trading in lots of a minimum size of US$250,000.  

“We note that Refinitiv Spot Matching is the primary source of inter-bank liquidity in twenty-seven (27) currencies due to its distinctive features; all prices are anonymous with counterparties knowing about their identities after a trade has been consummated, there is a clear rule book for participants, counterparties are screened for credit, a market-maker enters a bid or offer with volume and pricing is firm,” Dr Addison added.