The Ghana Gold Board has sold approximately US$125 million to commercial banks in its maiden GoldBod FX auction, marking the first transaction under a new framework designed to improve access to foreign exchange and strengthen transparency in the market.
The auction was conducted on Tuesday through the GoldBod GoFX platform as part of the Board’s Spot FX Sales and Intermediation Framework.
The system is intended to give authorised commercial banks a more predictable route for accessing US dollars while providing regulators with clearer information on transactions and allocations.
GoldBod Targets $1bn Sales to Banks
GoldBod plans to sell about US$1 billion to commercial banks during the month as part of a broader programme expected to generate approximately US$1.5 billion in foreign exchange.
Of that amount, US$1 billion is expected to be supplied directly to commercial banks, while up to US$500 million will be advanced to the Bank of Ghana to support the accumulation of international reserves.
The maiden US$125 million sale represents the beginning of that monthly programme.
GoldBod expects the arrangement to provide a steady supply of foreign exchange to banks while reducing uncertainty around access to dollars.
Auctions to Take Place Twice Weekly
Under the framework, GoldBod will conduct foreign exchange sales every Tuesday and Thursday.
Banks will submit their requests within designated transaction windows. Where total demand exceeds the amount available for a particular sale, allocations will be made on a pro rata basis.
GoldBod says the approach is meant to ensure that available foreign exchange is distributed transparently rather than concentrated among a small number of institutions.
Settlement will take place on the same day. The US dollar component of transactions is expected to be completed by 3:00pm, with the Ghana cedi leg settled by 4:00pm.
Banks Must Show Genuine FX Demand
Participating banks are required to confirm that their requests are supported by actual unmet foreign exchange demand or evidence of a short position.
They must also comply with existing Bank of Ghana directives and foreign exchange regulations.
The requirement is intended to limit speculative demand and ensure that foreign exchange supplied through the platform responds to genuine market needs.
BoG Gets Real Time Access
The Bank of Ghana will provide regulatory oversight for the programme and have real time access to activity on the GoFX platform.
GoldBod will also submit transaction reports to the central bank after every sale.
The electronic platform records submissions, allocations, transaction histories, time stamps and audit trails, giving both GoldBod and the regulator a clearer record of how foreign exchange is distributed.
The framework was developed following engagements between GoldBod and commercial banks and is expected to become a regular channel for supplying foreign exchange to the banking system.
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