BoG sells $20m to BDCs at 14.9441 in first auction of 2025

The Bank of Ghana (BoG) has sold a total of 20 million dollars in forex to 11 Bulk Oil Distributing Companies (BDCs) at the rate of 14.9441. The sale, which was held on January 14, is a forward contract that will be settled in 30 days. BDcs import fuel worth about $360 million each month into the country and the BoG auction is one of their sources of forex for the imports.

The previous auction of December 27 saw $20 million sold at 14.7690 and the exchange rate depreciation at this auction indicates the pressure on the currency as the BoG has halted its aggressive intervention in the market. Also driving cedi depreciation is businesses resuming from the holiday period and demanding forex to place orders or to settle foreign liabilities.

Fuel prices will remain a key watchpoint for the new government which has promised to improve the business environment after a period of high inflation, exchange rate depreciation, and worsening poverty from 2021. As most of Ghana’s refined fuel is imported, the exchange rate is crucial in determining the prices consumers pay at the pump. The new administration will thus be interested in maintaining a stable currency to help ease pressure on the population.

Source: ceditalk.com