Bank of Ghana borrows Ghs 70 million
The Bank of Ghana (BoG), has borrowed some Ghs 70 million from the domestic debt market.
The amount was raised through the auction of the Central Bank’s 56-day BoG bills on Monday, September 6, 2021.
The short-term debt with a maturity of 56 days was auctioned at a discount rate of 13.2 percent.
Per the auction results released by the BoG, it is unclear the value of bids made by commercial banks for the bills as well as whether the BoG was able to meet its target with the auctions of the BoG bills as both amounts were not stated by the Central Bank.
Central Bank bills – in this case BoG 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.
This Also: BoG’s SDR holdings with IMF decline by Ghs 100 million in a month
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 auction of Central Bank bills is often used by countries like China.
Peruse details of auction results below:
Bog Auctresults 619 Mon 6 Sept 21 by Fuaad Dodoo on Scribd
