The Central Bank has borrowed some Ghs 165 million from the domestic debt market.
The Bank of Ghana (BoG) borrowed the aforementioned amount through the issuance of a 56 day BoG bill.
The short-term security with a maturity period of 56 days was auctioned by the Central Bank on Monday, June 21, 2021.
Per the auction results released by the BoG, it is unclear the value of bids made by banks and insurance companies for the Central Bank bills as well as whether the BoG was able to meet its target with the auctions of its bills as both amounts were not stated by the BoG.
The 56 day BoG bills were auctioned at a discount rate of 13.2 percent by the Central Bank.
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Central Bank bills mostly employed through Open Market Operations (OMO), serve 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.
The interest rate or discount rate on 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.
Central Bank bills are often used in countries such as China, Indonesia and Chile.