BoG to sell $350m in quarter 2 to shore up Cedi

The Bank of Ghana (BoG) projects to sell a total of $350 million dollars to authorised dealers in the second quarter of this year, in the Foreign Exchange Forward Auction in a bid to shore up the Cedi.

 A notice posted on the BoG’s website yesterday, said the planned sale of the forex to authorised dealers was in accordance with its Foreign Exchange Forward Auction Guidelines.

The BoG said the move was expected to boost the supply of dollars on the market to help improve the stability of the local currency.

The Cedi in the first two months of the year has come under pressure against its international peers, due among others, to the repatriation of profits of some multinational companies.

The Central Bank bids were invited as per the prescribed format to purchase the United States dollars against Ghana cedis, separately on each auction date.

It said $150 million were expected be sold in May 2022, whilst $100 million each will be sold on April 2022 and June 2022 respectively.

In view of this the BoG said it would publish an auction calendar for the Foreign Exchange Forward Auction on quarterly basis.

“Also, the calendar will be published one week preceding the next quarter on the Bank of Ghana website,” it said.

The notice said the Competitive Multiple-priced Foreign Exchange Forward Auction would be governed by the guidelines published and available on the BoG website.


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