The Bank of Ghana (BoG) has sold $20 million to Bulk Oil Distribution Companies (BDCs) at the exchange rate of GH¢15.3169 to US$1. This suggests a cedi losing 1.173% of its value from the last auction on June 13 where the exchange rate was GH¢15.0523.

The range of bids received by the central bank were from GH¢14.8/US$1 to GH¢15.2/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.

The twice monthly forex auctions meet only about 10% of Ghana’s oil import needs with BDCs sourcing the extra forex from the open market. The cedi has depreciated by over 20% from the start of the year, hampering the central bank’s efforts to bring inflation to an end-year target of 15%.

Ghana recently reached a deal with eurobond creditors to restructure over $13 billion in commercial debt which could come with a payment of $477 million this year and $692 million in 2025. These payments are likely to increase the pressure on the currency unless the Eurobond market is reopened to the country.