Arresting the dollar: BoG to sell US$715 million in 2020 to fight cedi depreciation

The Bank of Ghana (BoG) has announced that it would auction US$715 million in Forward Foreign Exchange Auctions for the year 2020.

Per the schedule released by the Bank of Ghana, the central bank would have the highest auction of 80 million dollars each in January, February and March 2020.

According to the Bank of Ghana’s Foreign Exchange Forward Auction guidelines issued on September 23, 2019, the bids are invited as per the prescribed format to purchase or sell US dollar against Ghana cedi separately on each auction date.

The decision to auction such an amount of money is expected to help arrest the depreciation of the cedi to some extent.

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Following recent trends, the cedi is expected to depreciate by about 13% to the US dollar in 2019.

The Bank of Ghana, in October, began a Foreign Exchange Forward Rate Auction limited to 7-day, 15-day, 30-day, 45-day, 60-day and 75-day tenors.

In addition to the auction guidelines, all Authorised Foreign Exchange Dealer Banks were to comply with the provisions of the Code of Conduct for the Interbank Foreign Exchange market in Ghana.

Since the introduction of Foreign Exchange Forward Rate Auction, it has been recording a significant oversubscription.

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In other news, information reaching YEN.com.gh indicates that President and Chairman of Groupe Nduom revealed that more than 3,000 employees lost their jobs in the banking sector crisis in 2019.

Dr Papa Kwesi Nduom explained that many more workers are likely to lose their jobs due to the challenges put in their way which have negative consequences.

This was contained in a Christmas message signed by Dr Nduom copied to Adomonline.com.

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Source: YEN.com.gh