BoG borrows GHS 3.18bn at 1% increased interest cost
The Bank of Ghana (BoG) has successfully raised GH₵ 3.18 billion through the issuance of its own short-term Central Bank bills.
The bills, with a maturity period of 14 days, were auctioned on Wednesday, February 1, 2023, at an interest rate of 28 percent.
According to the auction results released by the Central Bank, details of the bids made by commercial banks and whether the BoG met its target with the auctions were not disclosed.
Central Bank bills, which are mostly employed through Open Market Operations (OMO), serve as an effective monetary policy tool used by central banks to regulate the money supply and manage the liquidity of the banking system.
The interest rate on the Central Bank bills is a crucial indicator of the central bank’s monetary policy stance, and it is used to determine the key interest rate.
The bills typically have fixed maturities of 14, 28, 91, 182 and 364 days.
The successful auction of the Central Bank bills by the Bank of Ghana demonstrates its commitment to maintaining stability and control over the financial system in the country.
