In a recent post on Facebook, The former Chief Executive of the Ghana National Petroleum Corporation (GNPC), Alex Mould, warned Ghana to be very cautious because a fuel shortage might hit the country soon because of the exchange rate.
Taking to Facebook, he wrote:
A fuel shortage is imminent due to a foreign exchange (FX) credit crunch unless the government intervenes. Banks are reporting a shortage of FX to meet payments of maturing Letters of Credit (LCs) issued to international oil trading companies such as BP, Vitol, Trafigura, etc.
“This is due to the Bank of Ghana’s inability to meet requirements at the various FX auctions.” Some banks have even stopped quoting FX rates as there is simply no availability for the quantities required by the fuel importers (BDCs). This is causing BDCs to max out their credit-line limits with their banks, and the implication is that the banks will no longer have credit lines available for the BDCs to import fuel going forward.
Source: Gossips24.com
