The 7-Day tenor dominated the bids for the forward forex sales by the Bank of Ghana on October 20, 2020.
Out of a total of 93 bids submitted by banks, 47 of them were 7-Day tenor.
This indicates that the 7-Day tenor alone made up a little over half of the total bids submitted, bringing in approximately 50.5 percent of total bids submitted by the banks.
The number of bids accepted out of the total bids submitted summed up to 35, the report added. Except for the 7-Day and 15-Day tenor, all the other tenor recorded their bids accepted to be equal to bids submitted by the banks.
Again, even though the banks submitted up to 47 bids for the 7-day tenor, only 15 got accepted. In a similar vein, only a fraction of the bids submitted for the 15-Day tenor were accepted, with only 8 bids being accepted out of the total of 34 bids submitted.
Out of the US$77 million worth of bids submitted, only US$25 million worth of bids were accepted, in keeping with the stipulated target.
Thus, the bids cover ratio hovered around 3.08×, meaning that the worth of total bids submitted was up to 3.08 times the stipulated target set by the Bank of Ghana.
A breakdown of the bids submitted by the banks provided in the report showed that except for the 15-Day tenor which came close to the 7-Day tenor by recording 34 bids, all the other Tenor recorded very low levels with 30-Day tenor recording 7, both the 45- and 75- Day tenor logging in with 2 each, and then the 60-Day Tenor coming in with the least record of 1 of the total number bids submitted in that order.
In terms of rates, the 30-day tenor logged in the highest range of rates for bids submitted, reaching between 5.785 and 5.8025, and for the range of rates accepted, the 15-Day tenor came first logging between 5.7925 and 5.7950. The remaining tenors also recorded a similar but marginally smaller range of rates. For example, the 7- day tenor had a range of rates for bids submitted extending from approximately 5.77 and 5.80 while its range of rates for bids submitted lay between about 5.78 and 5.7805.
The range of rates for the 60-Day tenor was consistently the same throughout. The minimum rate submitted was about 5.77 and this figure repeated itself for the maximum rate submitted. A similar occurrence was noted in the column for the range of rates accepted as the same figure of approximately 5.77 was recorded for the minimum rate accepted and repeated yet again for the maximum rate accepted.
It must also be noted that some bids were considered null and void. They were represented in the chart as invalid bids submitted, and as such, rendered inadmissible because they “did not meet the forex forward auction guidelines”, the Bank of Ghana opined. The total number of bids ruled as invalid were worth a total of US$250,000.
