BoG auctions 14-day bill at 22% interest rate; raises GHS 780m
The Bank of Ghana (BoG), has raised some GHS 780 million from the issuance of its own bills.
The BoG bills with a maturity period of 14 days was auctioned by the Central Bank on Wednesday, August 31, 2022.
Per the auction results released by the BoG, it is unclear the value of bids made by commercial banks 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 bills were however, auctioned at an interest rate of 22 percent.
The 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.
In most cases, funds raised from the auction of the BoG bills are directly loaned to government to support its short term needs.
Bog Auctresults 670 Wed 31 August 22 by Fuaad Dodoo on Scribd
