The Bank of Ghana (BoG) is set to auction $120 million to Bulk Oil Distribution Companies (BDCs) in the first quarter of 2025.
This is aimed at bolstering fuel supply stability in the country. The Central Bank, to this end, has outlined a foreign exchange forward auction calendar.
The calendar outlines six scheduled auctions, each allocating $20 million, to be conducted biweekly from January to March 2025.
The first auction is set for January 14, with subsequent auctions on January 29, February 12, February 26, March 12, and March 26. These auctions will adhere to the guidelines established by the central bank, aimed at promoting transparency and efficiency in the foreign exchange market.
The initiative is part of the Central Bank’s strategic measures to address foreign exchange demand pressures and stabilize the cedi, particularly in the downstream petroleum sector.
By providing BDCs with reliable access to foreign currency, the auctions are expected to bolster their capacity to import refined petroleum products, mitigating supply disruptions and ensuring price stability for consumers.
“The Bank of Ghana announces for the information of all Authorised Foreign Exchange Dealing Banks, the Bulk Oil Distribution Companies (BDCs) FX forward Auction Calendar for the first quarter of 2025.
“In accordance with the BDCs Forex Forward Auction guidelines, bids are invited as per the prescribed format to purchase United States Dollars against Ghana cedis, separately on each auction date and should be submitted via the dedicated email bogforwards@bog.gov.gh” part of a statement issued the Central Bank read.
Market participants, including authorized foreign exchange dealing banks and BDCs, have been directed to submit their bids through designated channels during specified timelines. The results of each auction will be announced on the same day, ensuring prompt communication to stakeholders.
The development highlights the BoG’s commitment to fostering macroeconomic stability and supporting key sectors of the economy. It also underscores the importance of collaboration between the central bank and industry players to navigate the complex challenges of the global energy market.