The Ghana Gold Board (GoldBod) has sold approximately US$125 million to commercial banks in its maiden foreign exchange auction under a new spot FX sales and intermediation framework.
The auction, conducted on Tuesday, forms part of GoldBod’s efforts to provide commercial banks with more predictable access to US dollars while promoting transparency and fairness in the foreign exchange market.
The sales were conducted through the GoldBod GoFX platform, an electronic system designed to manage the submission, allocation and settlement of foreign exchange transactions.
GoldBod has announced plans to sell a total of US$1 billion to commercial banks during the month under the programme.
The broader initiative is expected to generate about US$1.5 billion, with US$500 million of the amount earmarked for the Bank of Ghana to support the accumulation of foreign exchange reserves.
Twice-weekly dollar sales
Under the framework, GoldBod will conduct FX sales to participating banks twice a week, on Tuesdays and Thursdays.
Commercial banks will submit their requests within designated sales windows, with allocations made on a pro-rata basis where demand exceeds the available foreign exchange.
GoldBod said the arrangement is intended to ensure that available dollars are distributed in a transparent and equitable manner.
Transactions will be settled on the same day, with the US dollar leg completed by 3:00pm and the Ghana cedi leg by 4:00pm.
Banks required to show genuine demand
To limit speculative activity, participating banks will be required to declare that their requests are backed by actual unmet foreign exchange demand or evidence of a short position.
The banks must also comply with applicable Bank of Ghana regulations and directives.
The framework is therefore designed to channel the foreign exchange facility towards genuine market requirements rather than speculative demand.
BoG to monitor transactions
The Bank of Ghana will provide regulatory oversight of the programme and have real-time access to the GoldBod GoFX platform.
GoldBod will also submit transaction reports to the central bank after each sale.
The electronic platform provides features including time-stamping, transaction histories and audit trails, which GoldBod says will support transparency, accountability and post-trade verification.
The maiden auction followed engagements between GoldBod and commercial banks ahead of the implementation of the new Spot FX Sales and Intermediation Framework.
The framework is expected to give authorised commercial banks more predictable and transparent access to US dollars while strengthening oversight of foreign exchange transactions.
