The Bank of Ghana has introduced a new interbank forex trading platform called the Refinitiv’s Spot Matching, in a real-time manner for all commercial banks.

The platform, which will be in lots of a minimum size of US$250,000, goes live today.

The move is part of measures to strengthen the stability of the local currency, the cedi. So far this year, the cedi has appreciated by more than 4% to the US dollar.

According to the central bank, the Refinitiv Spot Matching is the primary source of inter-bank liquidity in 27 currencies due to its distinctive features.

It is a trusted primary FX market platform with unique features designed to support an order book that ensures back-to-back trading with firm prices in a transparent fashion to encourage genuine trading interest.

All prices are anonymous with counterparties knowing about their identities after a trade has been consummated. There is also a clear rule book for participants while counterparties are screened for credit.

Speaking at the launch of the platform, the Governor of the Bank of Ghana, Dr Ernest Addison, said: “As the Ghanaian FX market evolves, it is important to embrace international best practices and standard interbank trading 4 conventions that will position Ghana as a preferred destination for investor equity and portfolio flows in Africa.”

Continuing, he said: “It is the expectation of the BoG that this platform will improve price discovery and transparency through real-time access to live prices for onshore and offshore stakeholders in the Ghana interbank FX market and deliver clear surveillance for Bank of Ghana. This platform will also provide efficient execution of FX trades with no last look and counterparties will be screened for credit, thereby encouraging genuine interest to trade and client confidence.”

He emphasised that the central bank would, in the future, approve granting functionality permission on this platform to other relevant stakeholders such as the Bulk Oil Distribution Companies (BDCs) and mining firms that it considers important in the foreign exchange market.

In February 2019 and October 2019, the bank introduced the Ghana interbank market rules and forward FX auctions, respectively.

The cedi traded between GHS5.280 and GHS5.285 to one US dollar on the interbank forex market on Friday. You can, however, purchase a dollar for GHS5.40 at a forex bureau near you.