The Central Bank raised some Ghs 1.45 billion in the auction of a 14-day Bank of Ghana (BoG) bill on Wednesday, June 30, 2021.
The auction made on Wednesday, follows an earlier auction made on June 16, 2021, in which the Central Bank raised some Ghs 1.97 billion.
The auctioned BoG bills on June 16, was at a discount rate of 13.4 percent, the same discount rate at which the 14-day BoG bill was auctioned on June 30, which saw the Central Bank realise the aforementioned amount of Ghs 1,457 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.
Read: BoG Bills: Central Bank raises Ghs 1.9 billion in short-term securities
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.
