Bulk Oil Distribution Companies (BDCs) undertook a substantive transaction with the Bank of Ghana (BoG) on January 11, 2024.
Seizing the opportunity presented by the central bank’s forex forward auction, these entities collectively acquired $20 million at a rate of GHS 12.1369 per US dollar.
This is the first of such many forex forward auctions scheduled to take place in the first quarter of 2024
Participation in the auction saw thirteen BDCs submitting bids within a spectrum of GHS 11.8500 to GHS 12.1512.
The strategic alignment of these bids with the BoG’s established forex forward rate of GHS 12.1369 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 for the first quarter of 2024, 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.
