Demand for dollars by dealers outstripped supply by $84.5 million, latest data from the Bank of Ghana has revealed.
This is a reduction of the $105.25 million recorded during the last auction a fortnight ago.
According to the result of the sale of dollars through the Forex Forward Rates Auction to dealers, the Central Bank was only able to supply $25 million to the dealers, largely the banks.
The bids submitted for the purchase of the American ‘greenback’ was estimated at $109.5 million, compared with $130.25 million two weeks ago (August 9th, 2022).
From the results, it appears the high demand for the US dollars will end anytime soon. This indicates why the cedi has come under severe pressure lately, losing more than 34% in value to the American ‘greenback’.
A total of $56.25 million of the seven-day tenor was the highest bid by the dealers, followed by $30 million for the 15-day tenor.
The 30-day tenor received bids worth $18.75 million, whilst the 45-day tenor received bids amounting to $4.5 million.
No bids were received for the 60-day and 75-day.
The highest number of bids submitted by the dealers was for the 7-day bill in which 64 bids were made.
The least was the 45-day bill whereby 8 bids were submitted.
Fitch Solutions forecast 43% depreciation of cedi to dollar in 2022
Fitch Solutions is forecasting a 43% depreciation of the cedi to the US dollar in 2022.
It is also projecting a 30.1% fall in value of the American currency in 2023, which means the woes of the local currency will not get better anytime soon.