Bank of Ghana Allocates $20 Million to BDCs in Forex Forward Auction
The Bank of Ghana (BoG) has provided $20 million to Bulk Oil Distribution Companies (BDCs) through a forex forward auction on Wednesday, September 25, locking in an exchange rate of GHS 15.79 per US dollar.
The auction, which saw bids from 11 BDCs ranging between GHS 15.55 and GHS 15.70, is part of the central bank’s efforts to ensure a steady supply of foreign exchange to the downstream oil sector.
This intervention is designed to stabilize retail fuel prices in the face of global oil price volatility.
By injecting crucial foreign currency liquidity into the oil distribution sector, the BoG aims to support the industry and contribute to broader macroeconomic stability.
The auction is part of a $120 million package earmarked for BDCs in the third quarter of 2024, with $20 million being released every two weeks.
This forms part of the BoG’s strategy to maintain exchange rate stability and mitigate volatility in fuel prices, reinforcing the central bank’s commitment to managing currency pressures and sustaining market confidence.
