The Bank of Ghana has accepted $25 million in bids from Forex dealers, in its latest auction of Forex.
This means the BoG has agreed to accept 31.74% of the total amount of $78.75 million that forex dealers bid for.
According to the BoG a total of 108 bids were submitted in the latest Forex auction which was carried out on Tuesday [April 7, 2020].
This was contained in a report published by the Bank of Ghana (BoG) relative to controlling the supply of dollars in the system.
Bidding for foreign currency
Forex dealers in need of foreign currency within the next seven days bid the highest number of 53 while dealers who needed foreign currency in the next fifteen days had bids reaching 29.
There was one bid each for dealers who needed dollars within the next two months or more.
The Bank of Ghana offered higher prices for the minimum bids quoted by the dealers, but gave relatively lower prices for the maximum bids quoted by the dealers.
Dealers who needs foreign currency for the seven days quoted a minimum price of GH₵5.50 and a maximum price of GH₵5.77.
But the BoG gave a minimum price of GH₵5.68 pesewas and a maximum price of GH₵5.72.
For the latest auction of forex, total amount of bids that were considered as invalid since they did not meet the guidelines, was $2 million.
The Forward auction of forex, was introduced by the BoG, to control the amount of foreign currency in circulation.
This is to stop the perennial depreciation of the cedi.
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