BoG Concludes Final $20 Million Forex Auction for 2024 to Support Downstream Oil Sector; Prepares for Q1 2025
The Bank of Ghana (BoG) has disbursed $20 million to Bulk Oil Distribution Companies (BDCs) in its final forex forward auction for 2024, offering crucial foreign exchange liquidity to the downstream oil industry.
The auction, executed at a fixed exchange rate of GHS 14.76 per US dollar, attracted nine BDCs with bid rates ranging from GHS 14.50 to GHS 15.65 per dollar.
This allocation forms part of the central bank’s $120 million intervention package for the downstream oil sector in Q4 2024.
As part of this initiative, $20 million is released biweekly to ensure consistent foreign currency availability for oil imports, mitigating currency volatility and stabilizing retail fuel prices.
Focus on Macroeconomic Stability
The BoG’s intervention is pivotal in addressing foreign exchange shortages and managing inflationary pressures, reinforcing its broader mandate to stabilize the exchange rate and maintain market confidence.
This strategy is expected to provide relief to the oil sector, which is particularly vulnerable to currency fluctuations.
Looking Ahead to 2025
Meanwhile, the BoG has announced a $120 million forex auction plan for Q1 2025, aiming to sustain fuel supply stability and ease foreign exchange pressures.
Six biweekly auctions have been scheduled between January and March 2025, with the first set for January 14, followed by subsequent auctions on January 29, February 12, February 26, March 12, and March 26.
This structured approach highlights the central bank’s commitment to proactive foreign exchange management, ensuring steady support for the oil industry and fostering macroeconomic stability in a challenging economic environment.
