Bank of Ghana Allocates $20 Million to BDCs at GHS 16.20 per Dollar in Forex Auction
The Bank of Ghana (BoG) has injected $20 million into the downstream oil sector through a forex forward auction, providing critical foreign exchange liquidity to Bulk Oil Distribution Companies (BDCs).
The auction, conducted at a fixed exchange rate of GHS 16.20 per US dollar, saw participation from 12 BDCs with bids ranging between GHS 16.00 and GHS 16.39 per dollar.
Stabilizing the Oil Sector and Fuel Prices
This intervention is part of the BoG’s strategy to ensure a steady foreign exchange supply to the oil sector amid global oil price fluctuations.
By supporting BDCs, the central bank aims to stabilize retail fuel prices and reduce the impact of currency volatility on fuel costs.
Quarterly Support Package for BDCs
The $20 million allocation forms part of a $120 million package earmarked for BDCs in the fourth quarter of 2024.
Under this arrangement, the BoG releases $20 million every two weeks to sustain foreign currency availability for oil imports.
Commitment to Exchange Rate Stability
This initiative aligns with the BoG’s broader objective to maintain exchange rate stability and manage inflationary pressures.
The intervention is expected to mitigate currency volatility, reinforce market confidence, and contribute to macroeconomic stability.
As the central bank continues these bi-weekly auctions, their effectiveness in addressing forex shortages in the downstream oil sector will remain a key focus.
