BoG puts on offer $100m to dealers in Foreign Exchange Forward Auction
The Bank of Ghana is offering $100 million to sellers in a Overseas Trade Ahead Auction restricted to the 30 working day tenor currently, March 30, 2022.
This is component of moves to raise offer of dollar to the overseas exchange (Forex) market place and ease the depreciation of the cedi to dollar even further.
In addition to the pointers for Bulk Oil Distributing Businesses (BDCs) Forex Auctions, the Central Lender explained all authorized Overseas Exchange Seller Banks shall also comply with the provisions of the Code of Perform for the Interbank International Trade sector in Ghana.
The Bank of Ghana also directed financial institutions to guarantee that participation in the auction is constrained to qualifying BDCs centered on problems this sort of as evidence of a valid license to run as issued by the Countrywide Petroleum Authority as effectively as they becoming in superior standing with the NPA.
The BDCs must also present evidence of a contract indicating volumes and value of the goods including rates or discount rates used, as nicely as payment because of day as well as their contracts being valid for the recent window among April 1st and April 15th, 2022.
They have to also guarantee evidence of revenue to Oil Marketing Organizations in just the final three months.
BDCs are also expected to deposit all gross sales proceeds into an escrow account with their bidding banking companies for the window in which they take part in an auction. This will be carefully monitored.
Banks are also demanded to go on Fx received by BDCs at the profitable bid rates with no spreads.
The Bank of Ghana famous that it reserves the sole proper to auction allocation.
Meanwhile, authorised sellers are staying invited to post their bids in the asked for format for the auction as a result of the focused e-mail [email protected] concerning 10.30am and 11.30am.
