In a bid to steady the cedi and keep fuel prices in check, the Bank of Ghana (BoG) has pumped $20 million into the foreign exchange market. This move is part of its regular forward FX auction, specifically targeting Bulk Oil Distribution Companies (BDCs). A total of eleven BDCs benefited from this round, which was conducted at a fixed exchange rate of GHS 14.28 to the dollar.
This injection, which took place on Tuesday, April 29, fits into BoG’s ongoing efforts to ensure that the petroleum downstream sector remains stable despite external shocks. By providing forex directly to BDCs, the central bank is aiming to relieve pressure from the interbank FX market and keep fuel flowing without disruptions.
It’s worth noting that the auction saw bid offers between GHS 13.85 and GHS 15.55, but the rate was locked at GHS 14.28. This pricing strategy helps maintain predictability for BDCs and gives them the confidence to plan fuel imports with fewer surprises from exchange rate swings.
This $20 million allocation is just a slice of a larger $120 million support package the BoG is rolling out for Q2 2025. The funds are being disbursed every two weeks to qualified BDCs, showing the central bank’s intent to stay active and responsive to economic pressures.
Overall, this is part of a broader plan by the BoG to bolster macroeconomic stability. By supporting key sectors like petroleum, the bank is not just shielding consumers from the ripple effects of global market volatility—it’s also reinforcing confidence in Ghana’s economy.
Source: Citi newsroom