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

This is $220 million lower than the amount it sold in the final quarter of 2022. The Central Bank sold a total of $420 million to the BDCs via banks in quarter 4 of 2022.

It’s unclear whether the $200 million is enough to cater for the FX needs of the BDCs in order to import the right amount of crude oil into the country.

According to the auction calendar, a total of $80 million will be sold in January 2023, whilst $60 million will be sold each in February 2023 and March 2023 respectively.

There will be bi-monthly sale of $40 million in January 2023 and bi-monthly sale of $30 million in February 2023 and March 2023.

The cedi has remained relatively stable to the dollar so far in 2023 but the significant decline in the sale of the American ‘greenback’ is expected to affect dollar supply to dealers.

The Bank of Ghana, in the publication of the forex auction calendar, called for the invitation of bids as per the prescribed format to purchase the US dollars against the cedis separately on each auction date.

The auction of the US dollars will be conducted from January 12, 2023 to March 29, 2023.

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.

BoG sold $420m to BDCs in final quarter of 2022

The Bank of Ghana sold a total of $420 million to Bulk Oil Distribution Companies via banks in the final quarter of last year, in its Foreign Exchange Auctions.

This is higher than the amount it sold to the BDCs in the 3rd quarter of 2022.