The Bank of Ghana (BoG) has sold $20 million to Bulk Oil Distribution Companies (BDCs) at the exchange rate of GH¢14.8388 to US$1. This suggests a cedi depreciation of 4.3% from the last auction in mid-May where the exchange rate was GH¢14.1958.

The range of bids received by the central bank were from GH¢13.65/US$1 to GH¢14.3112/US$1 but the BoG sold at higher than the highest bids. The sale is a forward contract that will be settled in 30 days.

Ghana’s total oil imports as at April 2024 was US$1.55 billion, indicating a healthy demand of almost $400 million a month in oil imports. The twice monthly forex auctions totaling $40 million a month thus meets only 10% of BDCs’ demand for forex with the rest sought from the open market.

The Ghana cedi is under pressure, having depreciated by about 15.4% from the start of the year. Ghana’s finance minister, Dr Amin Adam, has attributed the cedi depreciation to US dollar strength, payment to contractors, payment to IPPs, and seasonal corporate demand.