BoG Forex Auction: 14 BDCs purchase $20m at GHS 12.15/$1 for fuel imports

Bulk Oil Distribution Companies (BDCs) undertook a substantive transaction with the Bank of Ghana (BoG) on December 13, 2023. Seizing the opportunity presented by the central bank’s forex forward auction, these entities collectively acquired $20 million at a rate of GHS 12.15 per US dollar.

Participation in the auction saw fourteen BDCs submitting bids within a spectrum of GHS 11.80 to GHS 11.95. The strategic alignment of these bids with the BoG’s established forex forward rate of GHS 12.15 underscores the central bank’s concerted efforts to assuage uncertainties surrounding foreign exchange availability, particularly within the critical downstream sector responsible for pricing imported fuel.

This successful auction is poised to play a pivotal role in anchoring stability in fuel prices at retail pumps, a development that holds significance in allaying consumer concerns amid the backdrop of a fluctuating economic landscape.

Noteworthy is the Bank of Ghana’s earmarking of $120 million for forex auctions in the final quarter, a testament to its unwavering dedication to buttress BDCs engaged in fuel imports and, by extension, sustain stability in fuel prices amid prevailing economic exigencies.

This proactive stance by the Bank of Ghana is integral to a comprehensive strategy aimed at nurturing a stable forex market and safeguarding overarching price stability.

By undertaking these auctions, the central bank not only manifests a commitment to economic resilience but also plays a pivotal role in fostering an enabling business environment. This, in turn, paves the way for a seamless flow of international trade and investment, positioning the Bank of Ghana as a linchpin in steering the nation toward economic equilibrium and sustained growth.