The Bank of Ghana (BoG) has sold $20 million to Bulk Oil Distribution Companies (BDCs) in a forward auction that will be settled in 30 days. The auction was held on May 28 and saw 6 BDCs put in bids ranging from 9.00 to 10.00 but the BoG settled the auction at GHS 10.3371 to the US Dollar, indicating that it was unwilling to offer forex at the rates sought by the BDCs.

Nevertheless, the rate shows a solid strengthening of the Ghana cedi from the last auction on May 14 where $20 million was sold at a rate of GHS 12.5027. The appreciation of the Ghana cedi against the dollar coupled with soft global oil prices have driven domestic fuel prices down, with more room for decreases in the coming week.

Latest economic figures released by the BoG indicates oil imports of $1.68 billion in the first 4 months of the year. The BoG has supplied $200 million through its auctions with the rest sourced from the open market.

The next auction is likely to come off in mid-June.