BoG slash Forex auction target by $200m; sets $150m target in Q3 2022

Some $150 million dollars is projected to be sold out to authorised dealers in the third quarter of the year.

This is per the Bank’s  third quarter Auction Target Calendar for Multiple-Price Foreign Exchange Forward Auction.

According to the Bank of Ghana, the said amount is going to be sold at the Foreign Exchange Forward Auction in accordance to its auction guidelines.

Compared to the some $350m auctioned in the last quarter, the Central Bank’s decision to auction $150m for the third quarter indicates a reduction of some $200m in its Forex forward auction.

The reduction in its forex auction can be attributed to the decline in the Bank’s foreign reserves from a little above $9.7bn last year to $8.3bn in April this year.

This is further evidenced by the Central Bank’s inability to meet the $450m demand by Bulk Oil Distribution Companies (BDCs) for fuel imports.

At the moment, the BoG is only able to supply some $150m to BDCs leaving a gap of $300m demand by BDCs.

The Bank of Ghana, in the publication of the Forex auction calendar, has called for the invitation of bids as per the prescribed format to purchase the US dollars against the cedis separately on each auction date.

Per the auction calendar, forex forward auctions amounting to $25m will be auctioned on each auction date from July 12, 2022 to September 20, 2022.

Receipts of bids will be made from 9:30am to 10:30am on each auction day with the announcement of the auction results made at 3pm on each auction date.