The Bank of Ghana accepts 39 bids out of 108 bids submitted by bank for the latest forex forward rates auction held.
This exceeds last forex sales figure where 31 out of 109 bids got accepted
Out of the US$80 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 was recorded to be 3.20×, meaning that the worth of total bids submitted was up to 3.2 times the stipulated target set by the Bank of Ghana. This is however, lower than the previous ratio of 3.34 times.
The results also shows that the7-Day tenor had the highest number of bids submitted.
According to the results presented by the Bank of Ghana, out of a total number of 108 bids submitted by banks, 51were 7-Day Tenor.
This means that the 7-Day tenor made up nearly half of the total bids submitted bringing in approximately 47 percent of total bids submitted by the banks.
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 38 bids, all the other Tenor recorded low levels with 30-Day tenor having 12 bids, 45-Day recording very low levels of 5 bids submitted and 60-Day tenor recording extremely lower levels of 2 bids submitted. There were no bids submitted for the 75- Day tenor.
The report further asserted that even though the banks submitted up to 51 bids for the 7-day tenor, only 14 of the bids were accepted. In a similar vein, only a fraction of the bids submitted for the 15-Day tenor were accepted, with only 12 bids being accepted out of the total of 31 bids submitted.Similarly, all the other tenor had bids accepted falling short of the bids submitted.
The Bank of Ghana intimated that the 15-day tenor logged in the highest minimum range of rates for bids accepted, reaching between 5.8095 and 5.8200, and for the range of rates for bids submitted, the 7-Day tenor recorded the highest minimum rate of 5.7875, and the 30-Day tenor recorded the highest maximum rate of 5.8450. The remaining tenors also recorded a similar but marginally smaller range of rates. For example, the 45- day tenor had a range of rates for bids submitted extending from approximately 5.78 and 5.79 while its range of rates for bids accepted lay around 5.79 for both the minimum and maximum rate.
It must also be noted that none of the bids were put down as null and void. All bids submitted were deemed valid buy they were not accepted because of the target amount set.
This is contrary to other auctions where invalid bids were submitted and according to the Bank of Ghana’s statement, they were rendered inadmissible because they “did not meet the forex forward auction guidelines”. For instance, the total number of bids ruled as invalid were worth a total of US$750,000 for last times’ auction
