BoG announces forex forward rate auction

The Bank of Ghana has announced a foreign exchange forward rate auction limited to 7-day, 15-day, 30-day, 45-day, 60-day and 75-day tenors on 1 October 2019.

In addition to the auction guidelines, the central bank said in a statement signed by its Secretary, Mrs Frances Van-Hein Sackey that all Authorized Foreign Exchange Dealer banks “shall also comply with the provisions of the Code of Conduct for the Interbank Foreign Exchange market in Ghana”.

The auction shall be held under the following conditions:

Amount on offer is US$50 million (Fifty million US Dollars).

Maximum bid size of a single bid shall not exceed ten per cent (10%) of the announced auction target. The cumulative volume of all bids from any single bank shall not exceed twenty per cent (20%) of the announced target for the auction.

Maximum bids submitted shall not exceed three (3) bids per authorised dealer bank.

Successful banks will be expected to provide the required Cedis on trade date in the case where they are buying a forward contract.

Allowable spread between the bid and offer for banks’ clients shall be 25 pips/0.0025 Cedis.

All bids shall be backed by customer demand and documentation shall be submitted to The Director, Financial Markets Department, Bank of Ghana, 24 hours after release of the auction results.

Bank of Ghana reserves the sole right to auction allocation.

All results announced are final.

Authorised dealers are invited to submit their bids in the requested format for the auction through the dedicated email bogforwards@bog.gov.gh and between 10.00 am and 12.00 pm on 01 October 2019.