BoG set to auction $715m in 2020

The Bank of Ghana (BoG) is set to auction $715 million in Forward Foreign Exchange Auctions throughout 2020.

January, February and March 2020 are the months with the highest expected auctions of $80 million each.

In accordance with the Foreign Exchange Forward Auction guidelines issued on September 23, 2019, the central bank said bids are invited as per the prescribed format to purchase/sell US dollar against Ghana cedi separately on each auction date.

The decision to auction such an amount of US dollars is expected to help salvage the perennial depreciation of the cedi.

Meanwhile, the cedi is predicted to depreciate by about 13% to the US dollar in 2019.

BoG in October, began a Foreign Exchange Forward Rate Auction limited to 7-day, 15-day, 30-day, 45-day, 60-day and 75-day tenors.

In addition to the auction guidelines, all Authorized Foreign Exchange Dealer Banks are to comply with the provisions of the Code of Conduct for the Interbank Foreign Exchange market in Ghana.

Since the introduction Foreign Exchange Forward Rate Auction, it has been recording a significant oversubscription.