The Ghana Chamber of Bulk Oil Distributors (CBOD) has expressed concern over the drop in the quantum of US dollars supplied by the Bank of Ghana to Bulk Distribution Companies (BDCs) in recent months.
Chief Executive of the Chamber, Senyo Hosi believes that to address the worrying trend, other key players in the foreign exchange supply chain must play their part.
Addressing journalists at a press briefing in Accra, the CBOD boss said the supply of US dollars to BDCs has reduced from 85 percent to 21 percent in three months.
“The BoG has actually reduced the quantum of its intervention in real terms and also in ratio terms relative to requirements.
“When we started, [during] the first window, we got US$114 million and another US$100 million, bringing the amount we got from the BoG in April to US$214 million. Then in the next month, the amount that was made available was US$125 million and then in June we are seeing $100 million,” he explained.
He continued, “Cumulatively, their intervention has been 40% of the requirements that have been submitted over the period. On a month-on-month basis, however, we have seen a very significant drop from 85% in April to 50% in May, and now we are seeing 21% in June,” he added.
To help mitigate the situation which could adversely impact fuel supply and pricing, Senyo Hosi stressed the need for key players in the open market to support the Bank of Ghana in its interventions to supply foreign exchange, especially in the domestic petroleum industry.
Over a period, Bulk Distributing Companies in the country have been struggling to gain access to foreign exchange at affordable rates in order to procure petroleum-related products.
Although the Bank of Ghana earlier this year introduced the foreign exchange forward auction program for BDCs, they believe the quantum of US dollar supply has dropped significantly and call for urgent action.
BDCs are licensed to import crude oil and finished products, store and distribute to oil marketing companies, among other functions.
MA/SA
