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 June 12 and saw 9 BDCs put in bids ranging from 9.00 to 10.00 but the BoG settled the auction at GHS 10.3284 to the US Dollar, indicating that it was unwilling to offer forex at the rates sought by the BDCs.

The rate is a slight appreciation from the 10.3371 which was recorded in the last auction on May 28. The Ghana cedi has appreciated by over 40% this year on the back of strong export figures and a robust level of international reserves.

Domestic fuel prices have tumbled down as a result and the suspension of the additional GH¢1 energy sector levy would ensure that pump prices will remain low assuming no extended period of elevated oil prices.