The Central Bank, through the issuance of its own bills on the domestic market has raised debt to the tune of $333 million (Ghs1,936 million).
The Central Bank bills with a maturity period of 14 days was auctioned by the Bank on Wednesday, July 14, 2021.
The auction made on Wednesday, follows an earlier auction made on July 2, 2021, in which the Central Bank raised some Ghs 1,457 million in debt.
The auctioned BoG bills on July 14, was at a discount rate of 13.4 percent, the same discount rate at which the 14-day BoG bill was auctioned on July 2, which saw the Central Bank realise the aforementioned amount of Ghs 1,457 million.
Per the auction results released by the BoG, it is unclear the value of bids made by the various authourised primary dealers involved in the auction as well as whether the Central Bank was able to meet its target with the auction of its bills as both amounts were not stated by the BoG.
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.
Find details of auction results below:
BOG Auctresults 611 WED 14 JUL 21 by Fuaad Dodoo on Scribd
