BoG Executes Successful GHS 868 Million Liquidity Operation Through Short-Term Securities
The Bank of Ghana has raised GHS 868 million through its latest issuance of 56-day bills, auctioned at an interest rate of 28.9%.
The auction underscores the central bank’s continued efforts to manage liquidity within the banking system, though bid values from primary dealers and specific issuance targets were not disclosed.
The issuance forms part of the Bank of Ghana’s Open Market Operations (OMO), a key lever of monetary policy aimed at fine-tuning liquidity in the financial sector.
By deploying short-term securities, the central bank seeks to regulate the supply of money and maintain stability in inflation.
With proceeds from the auction serving a dual purpose—absorbing excess liquidity and providing short-term funding for the government—the Bank of Ghana’s decision to offer a rate of 28.9% signals its current policy stance.
The elevated interest rate reflects the broader economic environment and the central bank’s determination to keep inflationary pressures in check while influencing market rates.
This move underscores the BoG’s proactive approach to addressing Ghana’s economic challenges and supporting fiscal operations. The central bank’s ability to effectively wield its policy tools will be critical to maintaining financial stability and achieving its monetary policy objectives.
