The Bank of Ghana (BoG) has sold $20 million to Bulk Oil Distribution Companies (BDCs) at the exchange rate of GH¢15.6631 to US$1 in its latest auction. This marks a depreciation of 0.36% compared to the previous auction held on August 28, where the exchange rate was GH¢15.6062. The forward contract, conducted on September 11, 2024, will be settled 30 days from the auction date.

The range of bids submitted for this auction was between GH¢15.2000 and GH¢15.6515. A total of 10 bids were submitted for the $20 million target amount, with no invalid bids recorded. While the auctions provide a much-needed influx of foreign exchange for fuel imports, they still account for less than 10% of the total monthly forex requirements for these imports.

The BoG’s strategy of holding forex auctions for BDCs at rates closer to the retail foreign exchange rate has helped reduce opportunities for arbitrage. This auction aligns with that approach, continuing to balance market demand with a controlled supply of dollars.