Successful forex forward auction to BDCs signals stability in forex market
The Bank of Ghana (BoG) has achieved its forex forward auction target of $20 million in the latest successful sale of US dollars to Bulk Oil Distribution Companies (BDCs) operating within Ghana. In a subscribed auction involving 16 BDCs, the bids ranged from GHS 10.70 to $11.40, with the BoG’s forex forward rate set at GHS 11.33.
The forex forward auctions, an integral part of the BoG’s strategy, are designed to mitigate future forex availability uncertainties and facilitate price discovery within the downstream sector’s general pricing window.
In its broader efforts to maintain a stable forex market and ensure price stability, the BoG has implemented various measures, including regular forex forward auctions to BDCs. These auctions provide BDCs with the opportunity to secure forex prices for future fuel imports, bolstering market predictability.
To further enhance transparency and efficiency in the forex market, the BoG has introduced regulatory measures, such as establishing an interbank forex market and a forex bureau association. These initiatives have successfully restored confidence in the forex market and fostered greater price stability.
The recent success of the forex forward auction testifies to the BoG’s effectiveness in promoting stability within the forex market and ensuring price stability for consumers in Ghana. The central bank’s unwavering commitment to these efforts is expected to yield a more resilient forex market and enhanced price stability, benefiting consumers and businesses alike in the country.
