Issuance of 14-day bill sees BoG raise Ghs 1.01bn in debt
The Central Bank raised some Ghs 1,014 million in the auction of a 14-day Bank of Ghana (BoG) bill on Wednesday, December 15, 2021.
The auction made on Wednesday, follows an earlier auction made on December 1, 2021, in which the Central Bank raised some Ghs 2.2 billion.
The auctioned BoG bills on December 1, was at a discount rate of 14.4 percent, the same discount rate at which the 14-day BoG bill was auctioned on December 15, which saw the Central Bank realise the aforementioned amount of Ghs 1,014 million.
Per the auction results released by the BoG, it is unclear the value of bids made by the various authourised primary dealers involved in the auction as well as whether the Central Bank was able to meet its target with the auction of its bills as both amounts were not stated by the BoG.
The BoG bills, mostly employed through Open Market Operations (OMO), serves as a monetary policy tool used by Central Bank to regulate money supply in the economy.
The main function for the issuance of the 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 auction results:
BOG Auctresults 633 WED 15 DEC 21 by Fuaad Dodoo on Scribd
