The Bank of Ghana (BOG) has allocated a total of $420 million to Bulk Oil Distribution Companies (BDCs) via banks in the last quarter of 2022 as part of its foreign exchange auctions.
In the third quarter of this year, the BOG sold more to the BDCs than this amount does now.
The auction schedule predicts sales of $120 million in each of the months of October 2022, November 2022, and December 2022.
However, just $60 million will be up for sale in September 2022.
Every two months, in October 2022, November 2022, and December 2022, there will be a sale for $60 million each.
Additionally, it will increase the flow of foreign exchange to BDCs, which will increase the market’s supply of petroleum products.
Since the beginning of the year, the cedi had been under pressure. However, the Bank of Ghana’s additional initiatives including the anticipated $1.5 billion Cocoa Syndicated Loan served to significantly lessen the intense pressure on the local currency.
To stop some operators from engaging in illicit activities, the Central Bank has already taken action against forex bureau operators who violate the foreign currency law.
According to regulation, the BDC’s Forex Forward Auction will be subject to the rules posted and readily accessible on the Bank of Ghana website, the BOG stated.
To prevent a lack of dollars being supplied to businesses and, as a result, a shortage of fuel in the nation, the Central Bank started selling dollars to BDCs a few months ago.
In the third quarter of 2022, BoG sold $150 million to authorized dealers.
Only $150 million was sold by the Bank of Ghana to approved dealers during the final quarter of 2022.
The $350 million that was sold in the second quarter of 2022 was much higher than this.
Demand for dollars was extremely high during that time, indicating systemic dollar liquidity.