In the third quarter of 2023, Bank of Ghana (BoG) has announced its plan to sell $120 million to Bulk Oil Distribution Companies (BDCs) through the FX Forward Auction Calendar.

As per the schedule outlined in the calendar, $40 million will be auctioned in July, August, and September 2023 respectively. In July, $20 million will be sold on both the 14th and 28th. In August, $20 million will be sold on both the 15th and 30th. Lastly, in September, $40 million will be sold, with $20 million each being sold on the 14th and 29th.

The aim of this FX support to the BDCs is to alleviate the dollar liquidity constraints faced by oil importers, which will help enhance the supply of petroleum products and stabilize prices at fuel stations.

Bank of Ghana (BoG)

The Bank of Ghana emphasizes that the BDCs Forex Forward Auction will be governed by guidelines published and available on its official website.

Interested parties are invited to submit bids in the prescribed format to purchase United States Dollars against Ghana cedis, separately on each auction date, via the dedicated email bogforwards@bog.gov.gh.

It is important to note that the International Monetary Fund (IMF) has previously advised the Central Bank to consider suspending the program due to concerns over the emergence of multiple exchange rates resulting from the BoG's occasional provision of forex support at rates that differ from those prevailing in the market.

The IMF expects the BoG to ensure that its forex liquidity is provided at market exchange rates and to implement measures supporting the unification of exchange rates across the board.