Central Bank Gulps GHS 22.7 Billion in OMO to Further Tighten Liquidity
The Bank of Ghana (BoG) has withdrawn approximately GHS 22.66 billion from the banking system through its 14-day bill auction, in line with ongoing open market operations (OMO) aimed at tightening liquidity conditions and reinforcing the disinflation process.
The latest liquidity absorption exercise comes at a time when inflationary pressures continue to ease, with headline inflation slowing to 3.2 percent at the end of March 2026.
The significant uptake of the short-term instrument highlights sustained investor demand for central bank securities, particularly within the short end of the yield curve.
Auction results published by the BoG indicate that bids were submitted within a yield range of 10.40 percent to 10.45 percent per annum, with accepted bids falling within the same range.
The auction cleared at a weighted average discount rate of 10.45 percent, corresponding to an effective annual interest rate of 10.49 percent.
The continued use of the 14-day bill underscores the central bank’s reliance on short-term instruments to actively manage excess liquidity in the financial system, as it seeks to anchor inflation expectations and maintain macroeconomic stability.
