US$450,000 bids submitted for the 17th Forex Forward Auction was rejected by the Bank of Ghana.

This was because the bids did not meet the FX (foreign exchange) forward auction guidelines.

However, the bids were subscribed by 202%, amounting to GHS75.7 million.

The Bank of Ghana, however, accepted GHS25 million bids.

Out of the bids, the 7-day tenor was highly subscribed to the tune of GHS40 million. The number of bids were 17.

The 15-day tenor was oversubscribed to the tune of GHS25 million. The number of bids were 13. The 75-day tenor did not receive any bids.

Analysts believe the uncertainty about the global economy due to the coronavirus, is the reason behind the bids for short tenors.

In the second quarter of 2020, the Ghana cedi depreciated by about 3.1% against the US dollar after closing the first quarter with a net appreciation of 1.68%.

The bulk of the 3.1% depreciation in Q2 happened in April 2020, due to the coronavirus pandemic.