- The Bank of Ghana has accepted $25 million in bids from forex dealers after its latest forex auction
- The amount represents 31.74% of the total amount of $78.75 million that forex dealers bid for
- The bidders were classified into various groups with 53 of them vying for foreign currency in the next 7 days
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The Bank of Ghana has received $25 million in bids in its latest forex auction, representing 31.74% of the total amount of $78.75 million that forex dealers bid for.
Per a report released by the Central Bank, its plan to control the supply of dollars led to the submission of 108 bid in the latest forex auction which was carried out on Tuesday, April 7, 2020.
A total of 53 dealers, being the highest number of bidders, sought foreign currency in the next seven days.
Per a citibusinessnews.com report, this was followed by 29 dealers, who sought foreign currency in the next fifteen days.
There was also one bid each for dealers who required foreign currency within the next two months or more.
YEN.com.gh understands that the Bank of Ghana offered higher prices for minimum bids quoted by dealers and offered lower prices for the maximum bids they quoted.
It was realized that bidders for the seven days quoted a minimum price of GHC5.50 and a maximum price of GHC5.77
The Bank of Ghana, however, offered a minimum price of GHC5.68 and a maximum price of GHC5.72.
With the latest forex auction, $2 million worth of bids were considered invalid because they failed to meet the stipulated guidelines.
The Bank of Ghana introduced the forward forex auction as a measure of control of the volume of foreign currency in circulation.
It explained that the core aim is to stem the constant depreciation of the cedi.
In other news, the Ghana cedi ended the first quarter in 2020 by appreciating 1.77% against the dollar.
The appreciation has been linked to the Forward Forex Auction initiated by the Bank of Ghana.
It has also been attributed to the fall in imports as a result of the coronavirus epidemic.
The cedi was, however, subjected to pressure in the last three weeks to the end of the first quarter.
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