Eleven BDCs Secure $20M from BoG in Latest Forex Auction
Eleven Bulk Oil Distribution Companies (BDCs) have secured $20 million from the Bank of Ghana (BoG) through its latest foreign exchange forward auction held on Wednesday, February 26, 2025.
The auction was conducted at a locked exchange rate of GHS 15.55 per US dollar, with bids ranging between GHS 15.38 and GHS 15.58.
The forex forward auction forms part of the BoG’s broader strategy to ensure the availability of foreign exchange for the downstream petroleum sector, aiming to stabilize fuel prices amid ongoing volatility in global oil markets.
By injecting forex liquidity into the oil distribution industry, the central bank seeks to mitigate exchange rate pressures, support industry players, and promote overall economic stability.
The intervention aligns with the BoG’s liquidity-enhancing measures, which include a total allocation of $120 million to BDCs in the first quarter of 2025. Under this arrangement, the central bank releases $20 million every two weeks, reinforcing its commitment to exchange rate stability and curbing fuel price fluctuations.
Market analysts anticipate that continued forex support for the downstream petroleum sector will help cushion consumers from steep fuel price hikes while ensuring operational stability for BDCs amid prevailing macroeconomic challenges.
