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 26 and saw 10 BDCs put in bids ranging from 10.00 to 10.35 but the BoG settled the auction at GHS 10.4033 to the US Dollar, indicating that it was unwilling to offer forex at the rates sought by the BDCs.

The rate is a slight depreciation from the 10.3284 which was recorded in the last auction on June 12. Domestic fuel prices have fallen significantly on the back of a strong cedi and weak global oil prices, contributing to the general disinflation trend.

Ghana imported $1.58 billion worth of fuel in the first 4 months of the year, accounting for 18% of total imports. The recent announcement that the Tema Oil Refinery (TOR) could resume refining oil domestically has industry watchers cautiously optimistic that the nation could be partially weaned off its dependence on refined crude products.