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

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

According to the auction calendar, $120 million each will be sold in October 2022, November 2022 and December 2022 respectively.

However, in the month of September 2022, only $60 million will be auctioned

As usual, there will be bi-monthly sale of $60 million each in October 2022, November 2022 and December 2022 respectively.

This improved sale of the American ‘greenback’ is expected to boost dollar supply in circulation and help slow down the depreciation of the cedi.

It will also boost supply of forex to BDCs and thus enhance supply of petroleum products into the market.

The cedi had been under severe pressure since the beginning of the year, following the downgrade of Ghana’s credit rating by rating agencies – Fitch, Moody’s and S&P.

However, the expected $1.5 billion Cocoa Syndicated Loan coupled with other measures by the Bank of Ghana had helped reduce the immense pressure on the local currency.

Already, the Central Bank had taken action against forex bureau operators flouting the foreign exchange law to curb illegal transactions by some operators.

The Bank of Ghana said in accordance with regulation, the Bulk Oil Distribution Companies (BDCs) Forex Forward Auction will be governed by the guidelines published and available on the Bank of Ghana website.

The Bank of Ghana introduced the sale of dollars to BDCs some months ago to avert the supply of dollar shortage to the firms, and consequently fuel scarcity in the country.

BoG sold $150m to authorised dealers in quarter 3, 2022

During the last quarter of 2022, the Bank of Ghana sold only $150m to authorized dealers.

This was far lower than the $350 million sold in the second quarter of 2022.

That was a period in which demand for dollars far outstripped supply, indicating dollar liquidity in the system.