The Bank of Ghana (BoG) has sold $20 million to Bulk Oil Distribution Companies (BDCs) at the exchange rate of GH¢15.4526 to US$1. This suggests the cedi losing 0.9% of its value from the last auction on June 27 where the exchange rate was GH¢15.3169.

The auction, which was carried out on July 10, saw bids ranging from 15.2 to 15.4 cedis to the dollar but the central bank sold at a rate higher than the highest bid. The sale is a forward contract that will be settled in 30 days from the auction date.

Ghana imported $1.55 billion worth of fuel from January-April 2024, an indication that the combined monthly sales of $40 million in forex to BDCs only meets only about 8% of monthly forex demand with the rest sought on the open market.

The cedi has depreciated by about 23% against the US dollar this year. The government has recently reached an official agreement with bilateral lenders and a preliminary agreement with commercial creditors to receive a combined $7.5 billion in cashflow relief up to 2026.