Bank of Ghana Injects $20 Million into Downstream Oil Sector at GHS 15.86 Per Dollar
The Bank of Ghana (BoG) has injected $20 million into the downstream oil sector, providing critical foreign exchange support to Bulk Oil Distribution Companies (BDCs) through a forex forward auction held on October 10.
The auction, which saw bids from 10 BDCs, secured an exchange rate of GHS 15.86 per US dollar, with bids ranging from GHS 15.70 to GHS 15.88.
This measure is part of the central bank’s broader initiative to ensure the availability of foreign currency to oil distributors, a move aimed at stabilizing retail fuel prices amid fluctuating prices of global oil markets.
By offering liquidity to the BDCs, the BoG seeks to mitigate exchange rate volatility and support macroeconomic stability, especially as global oil price movements pose challenges to the local economy.
This $20 million injection is part of a larger $120 million package designated for the sector in the fourth quarter of 2024, with periodic auctions set to release $20 million every two weeks.
The central bank’s efforts form part of a targeted strategy to manage currency fluctuations and sustain market confidence, underscoring its commitment to stabilizing exchange rates and alleviating pressure on fuel prices.
The intervention comes at a critical time, reflecting BoG’s proactive approach to maintaining economic equilibrium in the face of external pressures.
