BoG gulps GHS 2.3 billion in 56-day maturity debt instrument issuance
The Bank of Ghana (BoG), has raised some GHS 2.3 billion from the issuance of its bills.
The BoG bills with a maturity period of 56 days was auctioned by the Central Bank on Wednesday, April 24, 2024.
The bills, per the auction results from the BoG, were auctioned at an interest rate of 28.9 percent.
The auction results did not indicate the value of bids made by primary dealers as well as the target of the BoG.
Central Bank bills – in this case BoG bills – mostly employed through Open Market Operations (OMO), serve as a monetary policy tool used by Central Banks to regulate the money supply in an economy.
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 the 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.
