BoG meets $60m target in 30-day tenor forex auction to BDCs
The Central Bank achieved its forex forward auction target of $60m in the sale of the US dollar to Bulk Oil Distribution Companies (BDCs) in the country.
The 30-day tenor $60m forex auction by the BoG was subscribed by 28 BDCs who through their banks submitted bids ranging from $9.50 to $11.00.
The BoG’s forex forward rate for the auction was $9.46.
The forex forward auctions by the BoG to BDCs is intended to minimise the uncertainty of the future availability of forex and aid price discovery especially for the general pricing window within the downstream sector.
With the exclusive forex forward auction to BDCs by the BoG, prices of imported fuel at the pumps is expected to witness some stability.
The Central Bank has set aside some $420m to be auctioned to BDCs to support their imports of fuel for the fourth quarter of 2022.
Meanwhile, major Oil Marketing Companies (OMCs) across Ghana have started beating down their prices on petroleum products as GOIL now sells petrol for GHS 13.40 and Diesel for GHS 16.10, causing a GHS 2 margin reduction from its previous price.
This new development comes as a result of the fast appreciation of the cedi against the dollar.
According to reports, other Oil Marketing Companies will follow suit as GOIL has just done in pursuit to relieve Ghanaians of the harsh economic conditions.
Moreover, COPEC says it has engaged with the various Transport Unions to reduce fares considering the significant drop in prices of petroleum products.
Duncan Amoah, the Executive Secretary of COPEC has indicated that the drop in fuel prices is significant and therefore providing a justification for a downward review in transport fares.
“I don’t think the justification could ever be that when you have fuel prices drop as much as five, six or even seven cedis per litre, fares should not reflect downwards,” he stated.
