BoG borrows GHS 626m in 14-day bill
The Bank of Ghana (BoG) has borrowed GHS 626m through the issuance of a 14-day BoG bill on Wednesday, May 4, 2022.
Value of bids made by banks, pension funds, insurance companies and other players in the auction process for the bank’s short-term security is unknown as that was not noted in the auction results made available by the bank.
It is unclear if the Central Bank was able to meet its target as that information was also not disclosed in the auction results.
The 14-day BoG bill was auctioned at a discount rate of 16.8 percent by the Central Bank.
The BoG bill mostly employed through Open Market Operations (OMO), serve as a monetary policy tool used by the Central Bank to regulate money supply in the economy.
Read: Five key considerations for SMEs when choosing a business bank account
The main function of the BoG bill is to manage the liquidity of the local banking system through the sale of short-term securities on the primary market.
The interest rate or discount rate on the BoG bill is the key interest rate that determines the monetary policy stance or rate.
The BoG bill usually has fixed maturities of 14, 28, 56, 91 and 182 days.
Peruse details of auction results below:
BOG Auctresults 653 WED 4 MAY 22 by Fuaad Dodoo on Scribd
