BoG releases $20M to oil distributors in latest forex auction

The Bank of Ghana (BoG) has provided $20 million in foreign exchange support to 11 Bulk Oil Distribution Companies (BDCs) through its latest forward auction on Wednesday, January 29, 2025.

During the auction, participating BDCs submitted bids with rates between GH¢14.89 and GH¢15.30, with the central bank setting a fixed exchange rate of GH¢5.47 per US dollar.

This initiative is part of the BoG's broader strategy to ensure consistent foreign exchange availability for Ghana's downstream petroleum sector. 

The programme aims to help stabilise fuel prices in the face of fluctuating global oil markets. The central bank has earmarked $120 million for BDCs in Q1 2025, with distributions of $20 million scheduled every two weeks. 

This systematic approach demonstrates the BoG's dedication to maintaining exchange rate stability and managing fuel price fluctuations.

Through this forex intervention, the BoG seeks to accomplish multiple objectives: reducing pressure on the foreign exchange market, providing crucial support to industry stakeholders and fostering overall economic stability in Ghana's petroleum sector.