The Bank of Ghana (BoG) has announced a move to bolster fuel supply stability in Ghana through a series of foreign exchange (forex) auctions targeting Bulk Oil Distribution Companies (BDCs).
This initiative, aimed at mitigating potential supply disruptions and price hikes, will see the BoG auction a total of $120 million to BDCs in the first quarter (Q1) of 2025.
According to the central bank, the planned auctions will be conducted bi-weekly throughout Q1 2025, with six auctions scheduled to release $20 million each.
The move aims to provide BDCs with predictable access to foreign currency, specifically US Dollars, which they require to import refined petroleum products. The reliable access to forex is expected to empower BDCs to maintain consistent fuel import levels, thereby preventing potential supply shortages.
The BoG further opined that the initiative forms part of a broader strategy to address foreign exchange demand pressures within the economy. By specifically targeting the downstream petroleum sector, the central bank hopes to stabilize the cedi and prevent fuel price fluctuations for consumers.
Market participants, including authorized forex dealing banks and BDCs, are required to submit bids electronically through designated channels within specified timeframes. The BoG notes that the results of each auction will be promptly communicated to stakeholders on the same day.
The $120 million forex auction initiative is a step towards ensuring Ghanaians have continued access to affordable and reliable fuel supplies.
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