BoG meets $60m target in 30-day tenor forex forward auction to BDCs

The Central Bank achieved its forex forward auction target of $60m in the sale of the US dollar to Bulk Oil Distribution Companies (BDCs) in the country.

The 30-day tenor $60m forex auction by the BoG was subscribed by 28 BDCs who through their banks submitted bids ranging from $13.00 to $13.60.

The BoG’s forex forward rate for the auction was $13.33.

The forex forward auctions by the BoG to BDCs 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.

With the exclusive forex forward auction to BDCs by the BoG, prices of imported fuel at the pumps is expected to witness some stability.

The Central Bank has set aside some $420m to be auctioned to BDCs to support their imports of fuel for the fourth quarter of 2022.

Meanwhile, the Institute for Energy Security (IES) has projected a 10% and 8% decline in the pump price of petrol and diesel starting December 1, 2022.

The projected decline in the pump price of petrol and diesel is on the back of a decrease in the international price of gasoline (petrol) and gasoil (diesel).

According to the IES, international price of petrol and diesel in the last pricing window by 13.45% and 11.63% respectively.

On the back of the decrease in international price for petrol and diesel, the IES anticipates a GHS 1.63 and GHS 1.58 reduction in the pump prices of petrol and diesel from the national average price of GHS 16.31 and GHS 19.58 respectively.

Source: norvanreports