The Bank of Ghana (BoG) has sold $20 million to Bulk Oil Distribution Companies (BDCs) at the exchange rate of GH¢15.8682 to US$1 in its latest auction, held on October, 2024. This marks a depreciation of 0.43% compared to the previous auction conducted on September 25, where the exchange rate was GH¢15.7994. The auction is a forward contract that will be settled in 30 days.

The range of bids submitted for this auction was between GH¢15.2000 and GH¢15.8800, with the high-end of the bid suggesting a strong demand for forex. Domestic fuel prices had witnessed a drop due to favourable oil prices but have since risen on the back of persistent currency depreciation as well as the recovery of oil prices. The Ghana cedi has depreciated by about 25% since the start of 2024.

The auction to BDCs provides $40 million for fuel imports monthly to try to take pressure off the retail market which has to supply the rest of the forex to meet a demand of over $360 million per month. General elections are scheduled for December 7, 2024 and fuel prices will be a key topic for campaign.