"BoG Raises GHS 4.01 Billion via 56-Day Bills to Reinforce Tight Monetary Stance"

BoG Raises GHS 4.01 Billion via 56-Day Bills to Reinforce Tight Monetary Stance

The Bank of Ghana has raised GHS 4.01 billion through the issuance of 56-day central bank bills, as it seeks to withdraw excess liquidity from the financial system and reinforce its inflation-targeting posture under a tight monetary policy framework.

The short-term securities, auctioned on June 25, 2025, cleared at a yield of 27.9%, in line with the prevailing monetary policy rate. The central bank, however, did not disclose the bid volume or the auction target, leaving some uncertainty about the strength of investor demand and market appetite.

BoG bills serve as a primary tool in the central bank’s Open Market Operations (OMO), used to modulate banking system liquidity, guide short-term interest rates, and anchor inflation expectations. In the Ghanaian context, proceeds from these instruments also provide short-term financing to the government.

The 27.9% rate underscores the Bank’s continued commitment to a hawkish policy stance, despite progress on disinflation and amid signs of a tentative economic recovery supported by the ongoing IMF programme. Analysts say the yield signals that the central bank is not yet ready to loosen financial conditions, as inflation risks – though moderating – remain elevated.