The Central Bank raised some Ghs 1.9 billion in the auction of a 14-day Bank of Ghana (BoG) bill on Wednesday, June 2, 2021.
The auction made on Wednesday, follows an earlier auction made on May 26, 2021, in which the Central Bank raised some Ghs 1.08 billion.
Auctioned BoG bills on June 2, were at a discount rate of 13.4 percent, 0.98 percentage points less than the discounted rate offered in the previous auction of a 14-day bill which saw the BoG realise the aforementioned Ghs 1.08 billion.
Per the auction results released by the BoG, it is unclear the value of bids made by the various authourised primary dealers involved in the auction as well as whether the Central Bank was able to meet its target with the auctions of its bills as both amounts were not stated by the BoG.
The BoG bills, mostly employed through Open Market Operations (OMO), serves as a monetary policy tool used by Central Bank to regulate money supply in the economy.
The main function for the issuance of the 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.
