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Thursday, June 12, 2025

BoG raises GH¢4.79 billion in its 56-day bill

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The Bank of Ghana has raised GH¢4.79 billion through the issuance of 56-day central bank bills as part of efforts to tighten liquidity conditions and reinforce its monetary policy stance.

The short-term securities auctioned on June 9, 2025, were issued at an interest rate of 27.9%, according to results published by the Central Bank.

The auction details, however, did not disclose the bid volume received or the auction target.

BoG bills, a key instrument of the central bank’s Open Market Operations (OMO), are deployed to manage liquidity within the banking system, anchor inflation expectations, and signal the policy rate trajectory.

In Ghana, proceeds from such bills are often used to provide short-term financing support to the government.

The 27.9% yield aligns closely with the current monetary policy rate suggesting the Bank is maintaining a tight monetary policy stance to counter inflationary pressures.

The absence of data on bid coverage leaves a gap in assessing the strength of demand and broader investor sentiment.

However, the relatively high rate points to sustained tightening, even as the BoG balances disinflationary objectives with the need to support fragile economic recovery under Ghana’s ongoing IMF programme.

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