Bank of Ghana has announced that it will in a Forex Forward Auction sell a total of $200 million to Bulk Oil Distribution Companies (BDCs) in the first quarter of 2023.

In a press statement, the Central Bank indicated that it would hold six auctions from January 12 to March 29.

According to the auction calender, in January alone, the Central Bank would sell $80 million, where half of the amount would be sold on January 12 and January 30, respectively.

On February 14 and February 24, an amount of $30 million, will be sold to the BDCs respectively.

A total of $60 million have been allocated for March. $30 million will be sold on March 14, while the remaining half is sold on March 29.

Receipts of bids will be made from 9:30am to 10:30am on each auction day with the announcement of the auction results made at 3pm on each auction date.

“In accordance with the BDCs Forex Forward Auction guidelines, bids are invited as per the prescribed format to purchase United States Dollars against Ghana cedis, separately on each auction date and should be submitted via the dedicated email bogforwards@bog.gov.gh,” the statement added.

The initiative taken by the Central Bank is meant to reduce the high demand for the foreign currency, dollar.

However, it is unknown if the $200 million allocated would be enough to cater for the Foreign Exchange (FX) needs of the BDCs in order to import the needed amount of crude oil into the country.

This is because this year’s allocation is $220 million less than the amount sold in the final quarter last year. The Central Bank sold a total of $420 million to the BDCs via banks in quarter 4 of 2022.