Debt Auction: BoG raises GHS 1.58bn at 24.5% interest rate
The Central Bank has raised some GHS 1.58bn in debt from the issuance of its own bills – Bank of Ghana bills.
The bills with a maturity period of 14 days was auctioned by the Central Bank on Wednesday, November 16, 2022.
Auction results for the short term debt instrument does not indicate the value of bids made by commercial banks, insurance firms and other institutional investors for the Central Bank bills.
It also does not indicate whether the BoG was able to meet its target with the auction of its bills, as both amounts were not stated by the BoG.
The bills, were however, auctioned at an interest rate of 24.5 percent – reflective of the Bank’s new policy rate of 24.5 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.
Funds raised from the auction of the bills are usually loaned to the government to meet its short-term financing needs.
The auctioned amount will add up to government’s domestic debt stock of GHS 190.3bn leading to an increase in the country’s current public debt stock of GHS 402bn.
