Business

BoG to auction US$100m to BDCs

The Bank of Ghana (BoG) has announced a foreign exchange forward auction limited to the 30-day tenor.

In addition to the guidelines for Bulk Oil Distributing Companies (BDCs) FX Auctions, the central bank said all authorised 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:

§ Amount on offer is US$100.00 million (One hundred million US Dollars)

§ Banks are to ensure that participation in the auction is limited to qualifying BDCs based on the following conditions:

Ø Evidence of a valid licence to operate as issued by the NPA

Ø Must be in good standing with the NPA (i.e. no regulatory encumbrances)

Ø Provide evidence of a contract indicating volumes and cost of the products including premiums or discounts applied, as well as payment due date.

Ø Contracts must be valid for the current window between 1st and 15th April 2022.

Ø Evidence of sales to Oil Marketing Companies within the last three months.

§ 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.

§ Banks are required to pass on FX won by BDCs at the winning bid rates with no spreads.

§ Bank of Ghana reserves the sole right to auction allocation.

§ All results announced are final.

Authorised dealers have been invited to submit their bids in the requested format for the auction through the dedicated email bogfowards@bog.gov.gh between 10.30 am and 11.30 am.

Interested parties have also been asked to contact Anthony.AkuamoahBoat.bog.gov.gh and Maghnitta.Mensah@bog.gov.gh for further information.

Source: Classfmonline.com

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