The Bank of Ghana (BoG) has set guidelines for the allocation of Foreign Exchange (FX), through forward auctions to the Bulk Distribution Companies (BDCs).
According to BoG, the auction is offering an amount worth $100 million.
It directed that all authorized Foreign Exchange Dealer Banks must comply with the provisions of the Code of Conduct for the Interbank Foreign Exchange market in Ghana.
To meet the auctioning requirement, the Central Bank said;
“Banks are to ensure that participation in the auction is limited to qualifying BDCs based on the following conditions: Evidence of a valid license to operate as issued by the NPA; Must be in good standing with the NPA (i.e. no regulatory encumbrances),”
“Provide evidence of a contract indicating volumes and cost of the products including premiums or discounts applied, as well as payment due date” it said in a statement signed by the secretary, Sandra Thompson.
It stated further that there should be evidence to ensure that the sales to Oil Marketing Companies within the last three months.
BoG thus served notice that all contracts must be valid for the current window between April 1 to April 15, 2022.
In expectant, part of the statement says “BDCs are to deposit all sales proceeds into an escrow account with their bidding banks for the window in which they participate in an auction. This will be closely monitored”
It continued that, Bank of Ghana “reserves the sole right to auction allocation”, adding, all Foreign Exchange Dealers banks are required to pass on the FX won by BDCs at the winning bid rates with no spreads.
All authorised dealers are to submit their bids in the requested format for the auction through the dedicated email bogforwards@bog.gov.gh between 10.30am and 11.30am.
