The Bank of Ghana (BoG) has sold $20 million to Bulk Oil Distribution Companies (BDCs) at the exchange rate of GH¢15.7994 to US$1 in its latest auction, held on September 25, 2024. This marks a depreciation of 0.86% compared to the previous auction conducted on September 11, where the exchange rate was GH¢15.6631.

The forward contract 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 but the BoG sold at a rate higher than the highest bid, indicating expectations of future depreciation.

The latest data from the BoG shows that the cedi has depreciated by 24.3% year-to-date. Total oil imports as at August 2024 have totalled $3 billion, indicating a monthly forex requirement of $375 million to meet the nation’s fuel demand. The twice-monthly forex auctions provide only $40 million with BDCs having to seek for the additional forex in the open market.

Domestic fuel prices have declined in recent weeks largely due to the fall in global oil prices.