BDC Forex Auction: Central Bank meets $50m target at forward rate of GHS 8.81

The Central Bank achieved its forex forward auction target of $50m in the sale of the US dollar to Bulk Oil Distribution Companies (BDCs) in the country.

The 30-day tenor $50m forex auction by the BoG was subscribed by 24 BDCs who through their banks submitted bids ranging from GHS 8.45 to GHS 8.90.

The BoG’s forex forward rate for the auction was GHS 8.81, below the minimum forex forward rate of GHS 9.00 charged by most commercial banks in the country.

It is however, higher than the previous auction forward rate of GHS 8.26 charged by the Central Bank.

With the exclusive forex forward auction to BDCs by the BoG, prices of imported fuel at the pumps is expected to witness some stability – this is however not the case as prices of fuel has been on the rise since January this year with some marginal reduction in fuel prices witnessed at the latter part of July.

According to the BoG, the forward auctions 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.

Source: norvanreports.com