The Bank of Ghana (BoG) has sold $20 million to Bulk Oil Distribution Companies (BDCs) at the exchange rate of GH¢15.0523 to US$1. This suggests a cedi losing 1.42% of its value from the last auction in at the end of May 2024 where the exchange rate was GH¢14.8388.

The range of bids received by the central bank were from GH¢14.5/US$1 to GH¢15/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.

Despite inflation falling to the lowest in over 2 years, monthly inflation hit a 10-month high largely driven by the currency’s weakness. The country has its eye on a $360 million disbursement from the IMF expected by the end of June 2024.