Despite the recent rapid depreciation of the cedi, the sixth auction of the Forex Forward Rate has been oversubscribed by more than 265%.

According to the results of the auction held on 10 December 2019, the bids received amounted to US$91.2 million as against a targeted amount of US$25 million.

The central bank accepted 45 out of the 111 bids submitted.

It accepted 13 of the 42 bids submitted for the 7-day tenor, 18 of the 35 bids of the 15-day tenor, 12 of 26 bids for the 30-day tenor and one each for the 45-day and 60-day tenor.

The 7-day tenor received the highest amount of bid submitted of US$40.65 million at a maximum rate of US$5.67 and a minimum rate of US$5.48.

However, US$6.5 million of the bids were accepted.

The 15-day tenor received the highest bid accepted of US$10 million.

But bid submitted was US$27.5 million at a maximum rate of US$5.68 and a minimum rate of US$5.53.

The Bank of Ghana in October began a Foreign Exchange Forward Rate Auction limited to 7-day, 15-day, 30-day, 45-day, 60-day and 75-day tenors.

In addition to the auction guidelines, all Authorised Foreign Exchange Dealer Banks were to comply with the provisions of the Code of Conduct for the Interbank Foreign Exchange market in Ghana.

Meanwhile, the depreciation of the cedi, which is largely based on speculation and seasonality appears to be continuing.

At the forex bureau today, the cedi is going for about GHS5.73 to the dollar as against GHS5.68 last week.

The Bank of Ghana, however, quotes the one dollar to GHS5.54.