The Bank of Ghana has announced plans to sell $120 million to Bulk Oil Distribution Companies (BDCs) in the third quarter of 2023. The funds will be allocated through the FX Forward Auction Calendar, with $40 million to be auctioned each month from July to September. The objective is to address dollar liquidity constraints faced by oil importers, ensuring a stable supply of petroleum products and stabilizing prices at the pumps.
The auction dates and allocation breakdown for the FX support are as follows: $20 million on July 14 and 28, $20 million on August 15 and 30, and $20 million on September 14 and 29. BDCs interested in participating in the auction are required to submit bids following the prescribed format via the dedicated email address provided by the Bank of Ghana.
The BDCs Forex Forward Auction will be conducted in accordance with the guidelines published on the Bank of Ghana’s website. This initiative aims to support the oil industry by providing much-needed forex liquidity, contributing to a more stable market and ensuring a steady supply of petroleum products for consumers.
Opinion: The Bank of Ghana’s decision to sell $120 million to BDCs in the third quarter is a proactive move to address dollar liquidity constraints and stabilize prices in the petroleum sector. By providing adequate forex support, the central bank is demonstrating its commitment to ensuring a smooth operation of the oil distribution system and mitigating any potential disruptions that could impact consumers. This initiative will contribute to overall economic stability and promote confidence in the energy sector.