The exercise is expected to be carried out in five tranches covering the three months; spanning October to December.

The central bank, for each tranche, is seeking to auction $25,000,000.

The BoG captured this in a notice it served to all authorised dealers of the sales.

It said the move is in accordance with the Foreign Exchange Forward Auction Guidelines issued on September 23, 2019.

For every auction date, the bids will be received between 10am and 11:30 am.

Opening and review of bids will take place between 11:30 am and 12:30 pm while the announcement of results will take place at 2pm.

BoG auctions $17 million in its maiden forward forex sale

The Bank of Ghana (BoG) recently noted that it has been able to sell about $17 million in its maiden forward forex sale.

According to the BoG, it got more bids than the amount offered in its maiden sale of advance forex.

“$51.3 million in the form of bids came from businesses through our dealers and commercial banks. This was against some $50 million that the Bank of Ghana was willing to sell.”

The Head of financial markets at Bank of Ghana, Stephen Opata made the revelation while he spoke to Joy Business.

Background

Bank of Ghana while issuing notice on guidelines issued to forex dealers recently noted that it will begin forex forward auctioning effective October 1, this year.

In the notice, the bank of Ghana said the initiative which comes on the back of improved liquidity on the market and would deepen the foreign Exchange Market.

Foreign exchange dealers currently make forex purchase through spot sales that is; a purchase made on a day and settlements done in two days.