Ghana’s foremost bank, the Central Bank, has raised some Ghs 111.3 million in debts on the domestic debt market.
The debt was raised through the issuance of the Central Bank’s own bills with a maturity period of 14 days.
The Central Bank’s bills was auctioned on Wednesday, July 7, 2021.
Per the auction results released by the Central Bank, it is unclear the value of bids made by the primary dealers that participated in the auction of the bills.
It is also unclear whether the Central Bank was able to meet its target with the auction of the 14 day Bank of Ghana (BoG) bills as both amounts were not stated by the Central Bank.
The bills however, were auctioned at a discount rate of 13.4 percent.
Central Bank bills, mostly employed through Open Market Operations (OMO), serves as a monetary policy tool used by Central Banks to regulate money supply.
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 Central Bank bills are directly loaned to government to support its short term needs.
Peruse below the BoG’s auction results:
BOG Auctresults 610 WED 07 JUL 21 by Fuaad Dodoo on Scribd
