Bank of Ghana raises GHS 4.62bn in fresh debt through auction of Bills
The Bank of Ghana, through its auction of BoG bills, raised a total of GHS 4.62 billion in fresh debt on Wednesday, February 8, 2023.
The bills had a maturity period of 14 days and were auctioned at an interest rate of 28 percent.
Although the auction results did not reveal the value of bids made by financial institutions such as banks, insurance firms, and pension funds, the funds raised from the auction are usually used to support the government’s short-term financial needs.
Central Bank bills, such as the BoG bills, play a crucial role in managing the liquidity of the banking system.
They are mainly employed through Open Market Operations (OMO) and serve as a monetary policy tool used by Central Banks to regulate money supply.
The interest rate on these bills is also considered the key interest rate that determines the monetary policy stance.
