BoG raises Ghs 918 million in fresh debt
The Bank of Ghana (BoG) in the auction of its bills – BoG bills – has raised Ghs 918 million in fresh debt.
The auction of the BoG or Central Bank bills with a maturity date of 14 days took place on Wednesday, August 18, 2021.
The bills, per the auction results from the BoG was auctioned at a discount rate of 13.4 percent.
The auction results however, does not indicate the value of bids made by commercial banks for the bills.
It does not also indicate whether the BoG was able to meet its target with the auction as both amounts were not stated by the BoG.
Central Bank bills – in this case BoG bills – mostly employed through Open Market Operations (OMO), serves as a monetary policy tool used by Central Banks to regulate money supply.
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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 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. The bills usually have fixed maturities of 28, 63, 91 and 182 days.
Peruse details of auction results below:
BOG Auctresults 616 WED 18 AUG 21 by Fuaad Dodoo on Scribd
