Monetary Tightening Continues as BoG Raises Over GHS 3.3Bn in Bill Auction
The Bank of Ghana has raised GHS 3.34 billion through the issuance of short-term BoG Bills, as part of its liquidity management strategy under Open Market Operations.
The auction, conducted on Thursday, April 30, 2025, saw the central bank issue 56-day bills at a yield of 27.9 per cent—slightly below the prevailing monetary policy rate of 28 per cent.
The BoG did not disclose the volume of bids submitted nor the targeted offer size, maintaining its pattern of withholding full auction details. Market participants, however, interpret the success of the sale as a sign of continued confidence in short-term cedi-denominated instruments despite prevailing inflationary pressures and ongoing fiscal consolidation.
The issuance forms part of the BoG’s broader Open Market Operations framework, through which it seeks to mop up excess liquidity in the banking sector, temper inflation expectations, and align short-term interest rates with its policy objectives.
Proceeds from BoG Bills are also frequently deployed to meet short-term government financing requirements, offering a bridge between fiscal and monetary coordination.
The interest rate on the bills, while below the policy rate, remains a crucial benchmark for short-term market rates and interbank activity.
