As part of measures to tighten liquidity and tame inflationary pressures, the Bank of Ghana (BoG) has successfully raised GH¢9.09 billion from financial institutions through the auction of its 56-day bills.
This Open Market Operations (OMO) of the BoG is aimed at stabilizing the macroeconomic environment.
The official auction results published by the Central Bank on Monday revealed that bids were accepted at interest rates ranging between 26.7518% and 26.8437% per annum, with a weighted average interest rate of 27.9969%.
This auction reflects the continued reliance on short-term liquidity management tools to anchor inflation expectations and moderate exchange rate volatility.
Some analysts maintain that the significant uptake of BoG bills totaling GH¢9.1 billion underscores the market’s confidence in the Central Bank’s monetary tightening stance, even as interest rates remain elevated.
These bills, unlike government Treasury bills issued by the Ministry of Finance, are exclusively issued by the BoG to regulate money supply and influence short-term interest rates in the financial system.
By attracting such a large volume of bids at relatively high yields, the BoG is clearly pulling excess liquidity from the system to curb inflation and ease pressure on the cedi.
The move comes as Ghana continues to navigate complex economic headwinds, including high inflation, debt restructuring, and currency depreciation. The BoG’s proactive OMO strategy is seen as a key pillar in sustaining recent gains in price stability, following a series of base rate hikes and tightened policy measures.
Source:thehighstreetjournal.com
