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The Bank of Ghana has announced guidelines for the allocation of foreign exchange (FX) through forward auctions to Bulk Distribution Companies.
According to the Central bank, this will govern the conduct of foreign exchange forward auctions on the interbank foreign exchange market for the BDCs licensed by the National Petroleum Authority (NPA).
“In addition to the guidelines for Bulk Oil Distributing Companies (BDCs) FX Auctions, all Authorized Foreign Exchange Dealer Banks shall also comply with the provisions of the Code of Conduct for the Interbank Foreign Exchange market in Ghana.”
The Auction shall be held under the following conditions:
1. Amount on offer is US$100.00 million (One hundred million US Dollars)
2. Banks are to ensure that participation in the auction is limited to qualifying BDCs based on the following conditions:
a. Evidence of a valid license to operate as issued by the NPA
b. Must be in good standing with the NPA (i.e. no regulatory encumbrances)
c. Provide evidence of a contract indicating volumes and cost of the products including premiums or discounts applied, as well as payment due date.
d. Contracts must be valid for the current window between 1st and 15th April
2022.
e. Evidence of sales to Oil Marketing Companies within the last three months.
f. 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.
3. Banks are required to pass on FX won by BDCs at the winning bid rates with no spreads.
4. Bank of Ghana reserves the sole right to auction allocation.
5. All results announced are final.
On the auction schedule and frequency, it will be done in consultation with the NPA on pricing window schedules and held bi-weekly, conducted no later than three working days before the 1st and 16th of each month.
Also, the auction committee will comprise BoG staff appointed by the Governor and shall oversee the conduct of the auction and decide on the cut-off rate, guided by an allocation methodology.
Authorized dealers are invited to submit their bids in the requested format for the auction through the dedicated email bogfowards@bog.gov.gh between 10.30am and 11.30 am.
Please contact Anthony.AkuamoahBoat.bog.gov.gh and Maghnitta.Mensah@bog.gov.gh for further information.
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