The Bank of Ghana’s auction committee accepted less than fifty percent of the total amount of bids submitted by banks in the forex forward sales for Tuesday, January 28, 2019.
The forty million dollars accepted by the Central bank is about 38 million dollars less than the amount the banks bid for.
Results published by the Bank of Ghana showed that banks bid for dollars for a minimum of seven days to a maximum of forty-five days.
Total bids submitted amounted to 84 with minimum quotes ranging between 5 cedis 44 pesewas, and 5 cedis 52 pesewas.
The maximum quotes given by the banks however ranged between 5 cedis 61 pesewas, and 5 cedis 65 pesewas.
But the central bank’s auction decided to accept 45 of the total bids with minimum quotes ranging from 5 cedis 52 pesewas, to 5 cedis 54 pesewas; higher than that quoted by the banks.
Maximum quotes by the auction ranged between 5 cedis 55 pesewas, to 5 cedis 65 pesewas.
In all, the banks put in bids totaling 79.75 million cedis, but the auction accepted 40 million cedis.
Meanwhile, invalid bids submitted were four million dollars ($4,000,000).
The forward auction sales started in October 2019.
Under the move, foreign exchange dealers are able to make advance purchases of foreign currency to be supplied at an agreed rate later on.
The Bank of Ghana adopted this to help in regulating the supply of foreign currency and to stabilize the cedi for some time.