Auctions of $1.8bn cocoa syndicated loan begins today

11:30 - 30 November 2016

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In a statement issued by the Central Bank, it said the auction is “to ensure a well-functioning foreign exchange market and to further develop the foreign exchange market within the financial system of Ghana.”

The Bank of Ghana (BoG) will today begin this year’s dollar auction for commercial banks in the country to help stabilise the cedi.

This will be one of the three auctions expected to be held by the BoG where the Central Bank is projecting to give 60 million dollars.

Per the rules of the auction, it is limited to the purchase or sale of the US Dollars (USD) with equivalent value in the national currency – Ghana Cedi.

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Meanwhile, only authorised Foreign Exchange Dealing Banks will be allowed to partake.

Each eligible bank is allowed to submit a maximum of [3] bids in the auction, quoting their desired amount and at their freely determined exchange rate as per quotation convention.

The minimum bid size is US$500,000 and in multiples of US$250,000, and expressed in numbers.

Maximum bid size of a single bid shall not be more than ten percent (10%) of the announced auction target.

Meanwhile the cumulative volume of all bids from any single bank shall not exceed twenty percent (20%) of the announced target for the auction.

According to the regulations, authorized Banks shall submit their bids via a secured BOG Page on the Reuters Terminal or through a designated email in the approved format provided by the BOG.