BoG fails to meet $102m demand in forex auction

The Central Bank has failed to meet a $102m demand from buyers of the greenback in a forex auction held on Tuesday, July 12, 2022.

Per auction results announced by the BoG at 3pm on Tuesday, bids satisfied by the Central Bank was some $25m.

According to the BoG, total bids submitted by buyers of the greenback was $102m, four times more than the amount of dollars supplied by the Central Bank.

The supply of $25m forex to buyers by the Central Bank, leaves a demand gap of $77m to be filled by the BoG.

BoG sets $150m forex auction target for 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.

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.

Fx Forward Auction Result No 0073 by Fuaad Dodoo on Scrib