Bank of Ghana Auctions GHS 929 Million in Bills at 27% Interest Rate
The Bank of Ghana (BoG) successfully auctioned Central Bank bills worth over GHS 929 million on Wednesday, November 20, 2024.
The short-term debt instrument, maturing in 56 days, was issued at an interest rate of 27%, aligning with the BoG’s current policy rate.
Purpose of the Central Bank Bills
The proceeds from the auction are expected to be loaned to the Central Government, providing support for its short-term financing requirements.
Additionally, these bills serve a critical function in managing liquidity within the banking system, ensuring monetary stability.
Role in Monetary Policy
The auction was conducted under the framework of Open Market Operations (OMO), a monetary policy tool employed by central banks to control money supply.
By selling short-term securities, the BoG seeks to absorb excess liquidity from the banking system, thereby influencing economic conditions in line with its policy objectives.
Significance of the Auction
The auction reflects the BoG’s continued efforts to balance liquidity management and fiscal support amid Ghana’s challenging economic environment.
As the Central Government faces persistent financing pressures, such interventions play a crucial role in maintaining macroeconomic stability.
The performance of these bills and subsequent auctions will be closely monitored for their impact on liquidity levels and the broader economy.
