Central Bank mobilises GHS 3.6billion via 56-day bill
The Bank of Ghana (BoG), mobilised some GHS 3.66 billion from the issuance of its bills.
The Central Bank bill with a maturity period of 56 days was auctioned by the Central Bank on Wednesday, January 3, 2024.
The bill, per the auction results from the BoG, was auctioned at an interest rate of 29.97 percent.
The auction results did not indicate the value of bids made by banks 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 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 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.
