The Bank of Ghana (BoG) has sold $20 million to Bulk Oil Distribution Companies (BDCs) at the exchange rate of GH¢13.8643 to US$1. The sale is a forward contract that will be settled in 30 days.

The BoG received 12 bids ranging from GH¢13.2259 to GH¢13.6000 but could only offer the dollars at GH¢13.864 to a dollar. The special auctions carried out for BDCs is to allow them to import fuel for the domestic market. The country spent $4.5 billion in fuel imports in 2023. It is estimated that the auctions provide BDCs with only 20% of the forex they need for fuel imports with the rest procured from the open market.

Brent crude oil prices are up over 9% year-to-date to $84 per barrel. The cedi has shed about 14% of its value since the start of the year and local gasoline prices are up by about 15%.

Ghana is in the middle of an IMF programme seeking to restore macroeconomic stability after concerns over debt sustainability shut the country out of the international capital markets. It currently owes over $13 billion to commercial creditors and about $5 billion to bilateral creditors.