BoG auctions bills worth GHS 1.79bn
The Bank of Ghana [BoG] in the auction of its bills – BoG bills – has raised GHS 1.79 billion in fresh debt.
The BoG bills with a maturity period of 14 days was auctioned by the Central Bank on Wednesday, February 23, 2021.
The bills, per the auction results from the BoG was auctioned at a discount rate of 14.4 percent.
The auction results however, does not indicate the value of bids made by banks, insurance firms and pension funds for the bills.
It does not also indicate whether the BoG was able to meet its target with the auction as both amounts were not stated by the BoG.
Central Bank bills – in this case 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.
The interest rate on the Central Bank bills is the key interest rate that determines the monetary policy stance or rate.
Peruse details of auction results below:
BOG Auctresults 643 WED 23 FEB 22 by Fuaad Dodoo on Scribd
