The Bank of Ghana (BoG) has sold $20 million to Bulk Oil Distribution Companies (BDCs) at the exchange rate of GH¢16.2094 to US$1 in its latest auction, held on November 13, 2024. This marks an appreciation of 1.1% compared to the previous auction conducted on October 29, where the exchange rate was GH16.3933. The auction is a forward contract that will be settled in 30 days.

Despite the cedi being down 26% in 2024, it has gained about 2% in November in part due to an increased rate of intervention by the central bank. However, the improved USD liquidity on the market is unlikely to significantly impact the currency in the long-term due to outstanding foreign debt payments that are due from 2025.

Fuel imports average $360 million per month and has been a major contributor to the pressure on the Ghana cedi. The BoG’s twice-monthly auction provides only $40 million of the demand by BDCs with the rest sought out in the retail market.