BoG commits US$200 million to FX forward market in 2 months

The Bank of Ghana has in the first two months of the year committed a total of US$200m to the forex market through its forex forward auctions.

Bids submitted during the auctions in the two months amounted to US$419.4m, out of which US$267.25 million and US$150.15 million were for January and February, respectively.

The bids submitted were for the 7-day, 15-day, 30-day and 45-day tenors, as well as the 60-day and 75-day tenors.

The activities of the central bank on the forex market have largely driven the stability of the cedi this year amid the coronavirus pandemic.

According to the Governor of the Bank of Ghana, Dr. Ernest Addison, the bank remains confident that the reserves it has amassed so far, coupled with other measures to be implemented by the government, should see the local currency remain stable throughout the year.

The cedi, which depreciated by 3.8 percent against the dollar in 2020, outperformed most of its peers on the African continent. So far this year, it has appreciated by 0.4 percent against the dollar.