Six BDCs Participate in $20 Million Auction by Bank of Ghana
The Bank of Ghana (BoG) has disbursed $20 million to Bulk Oil Distribution Companies (BDCs) through a forex forward auction, providing vital foreign exchange liquidity to the downstream oil sector.
Conducted at a fixed exchange rate of GHS 14.81 per US dollar, the auction witnessed participation from six BDCs, with bid rates ranging between GHS 14.20 and GHS 14.55 per dollar. This intervention forms part of the central bank’s strategy to ensure consistent forex supply to the oil industry, addressing challenges posed by global oil price volatility.
The BoG’s support aims to stabilize retail fuel prices while cushioning the sector against the adverse effects of currency fluctuations. The $20 million allocation is part of a $120 million package designated for the downstream oil sector in Q4 2024. Under this arrangement, $20 million is released every two weeks to sustain foreign currency availability for oil imports.
This measure aligns with the central bank’s broader goals of maintaining exchange rate stability and managing inflationary pressures. By mitigating currency volatility and reinforcing market confidence, the intervention is expected to contribute to overall macroeconomic stability.
The bi-weekly forex auctions remain a focal point in addressing forex shortages, with their impact on the downstream oil sector closely monitored by market stakeholders.
