The Bank of Ghana has released for the information of all Authorized Foreign Exchange Dealing Banks the Auction Calendar for Foreign Exchange Forward Auctions to be held in the first quarter of 2022.
The Bank mentioned that in accordance with the Foreign Exchange Forward Auctions Guideline, bids are invited as per the prescribed format to purchase United States dollars against the Ghana cedis, separately on each auction date and should be submitted via the official contact email- [email protected]
The suggested date for Auction 0060 is 11th January 2022, followed by Auction 0061 on 25th January 2022, Auction 0062 on 8th February 2022, Auction 0063 on 22nd February 2022, Auction 0064 on 8th March 2022, and Auction 0065 on 22nd March 2022 to close out the first quarter of the year.
Meanwhile, according to the Forward Auction Calendar, it expects to generate $450 million from the foreign exchange forward auction to cover its financing needs in the first quarter of this year.
The foreign auction rates to be issued by the Central Bank are expected to fund the government’s projects in the first quarter of this year.
The government posited that it expects the first quarter of the 2022 calendar to suit market participants’ needs, assuring all stakeholders and the general public that it is working to improve predictability and transparency in the market.
On a quarterly basis, the Bank of Ghana will publish an auction calendar for the Foreign Exchange Forward Auction. The calendar will be available on the Bank of Ghana’s website one week before the start of the next quarter. The guidelines for the competitive multiple-priced Foreign Exchange Forward Auction will be published and available on the Bank of Ghana website.
New guidelines for the government securities market
The Bank of Ghana recently issued guidelines for government securities market participants, main dealers, and bond market experts.
The intent of these rules is to ensure that investors that purchase the government securities comply with the provisions of the Public Financial Management Act of 2016. (Act 921).
The instructions, according to the Central Bank, should be utilized in conjunction with existing Ministry of Finance directives. Furthermore, securities issued must be denominated in the local currency, the Ghana Cedis (GHS), unless the Ministry of Finance specifies otherwise. Furthermore, all subscription and redemption payments must be made in the currency of issuance.
Wholesale Auction
Only authorized dealers- Primary Dealers – are allowed to participate in the Wholesale auction, which is the primary market for the issue of Government of Ghana (GoG) and Bank of Ghana (BoG) securities.
As a result, all primary dealers are required to participate in the Treasury bill primary auction by purchasing bills for their own accounts and trading books.
Allotment and Pricing of the securities
Competitive bids will be ranked in ascending order of discount/interest rate or descending order of price.
Bills will be sold to applicants whose competing bids are at or above the lowest price or below the highest rate at which the auction committee will decide whether any competitive offer should be accepted, according to the Bank of Ghana.
Payment and Settlement
The settlement time for primary issuance of government treasury bills will be T+1, or the first working day after the auction unless otherwise stated by the Central Bank
READ ALSO: SSNIT Officials Implicated In The $11.79 Million Pension Investment Loss To Be Sanctioned
