Bank of Ghana borrows Ghs 241 million
The Central Bank in the issuance of its own short-term security has raised some Ghs 241 million in debt.
The short-term security with a maturity period of 56 days was auctioned by the Bank on Monday, July 26, 2021.
Per the auction results released by the Central Bank, it is unclear the value of bids made by the various commercial banks, pension funds and insurance firms for the Central Bank bills as well as whether the Bank was able to meet its target with the auction of its short-term debt security as both amounts were not stated by the Bank.
The Central Bank bills were however, auctioned at an interest rate of 13.5 percent.
Central Bank bills mostly employed through Open Market Operations (OMO), serves as a monetary policy tool used by Central Banks to regulate money supply.
The main function of Central Bank bills is to manage the liquidity of the banking system through selling short-term securities on the primary market.
In most cases, funds raised from the auction of the BoG bills are directly loaned to government to support its short term needs.
The interest rate on the Central Bank bills is the key interest rate that determines the monetary policy stance or rate. The bills usually have fixed maturities of 28, 63, 91 and 182 days.
Peruse details of auction results below:
BOG Auctresults 613 MON 26 JUL 21 by Fuaad Dodoo on Scribd
