Bulk Oil Distribution Companies (BDCs) last Tuesday, August 13, secured $20 million from the Bank of Ghana (BoG) through a forex forward auction, locking in an exchange rate of GHS 15.73 per US dollar.
The auction, which drew bids from 13 BDCs ranging between GHS 15.10 and GHS 15.60, highlights the central bank’s strategic efforts to ensure foreign exchange availability for the downstream oil sector.
The BoG’s intervention is aimed at stabilizing fuel prices at the retail level, particularly in the face of fluctuating global oil prices.
By injecting substantial foreign currency into the sector, the central bank not only supports the oil distribution industry but also contributes to wider economic stability.
The forward forex auction is part of a broader liquidity-enhancing strategy, with the BoG setting aside $120 million for BDCs in the third quarter of 2024.
Of this, $20 million will be made available bi-weekly, underscoring the central bank’s commitment to maintaining a stable foreign exchange environment and mitigating fuel price volatility.
Source:norvanreports.com