BoG mobilizes GHS 350m from 14-day bill
It is unclear the value of bids made by pension funds, insurance firms, commercial banks and other institutional investors for the 14-day maturity dated bills as total bids made for the bill was not indicated by the Central Bank.
The Central Bank has mobilized a total of GHS 350 million from the issuance of its own bills – Bank of Ghana (BoG) bills.
The bills with a maturity period of 14 days was auctioned by the BoG on Wednesday, October 19, 2022.
The short-term debt raised by the Central Bank is expected to be directly loaned to government to support its short-term needs.
It is unclear the value of bids made by pension funds, insurance firms, commercial banks and other institutional investors for the 14-day maturity dated bills as total bids made for the bill was not indicated by the Central Bank.
Also, as to whether the Central Bank was able to meet its target with the issuance of the bill or not is unknown as that was also not indicated by the BoG in its auction results report.
The bill, per the auction results report was however, auctioned at an interest rate of 24.5 percent.
Mostly employed through Open Market Operations (OMO), the Central Bank bill serves as a monetary policy tool used by the BoG to regulate money supply.
The main function of the BoG bill is to help manage the liquidity of the Ghanaian banking system through selling short-term securities on the primary market.
The interest rate on the Central Bank bill is the key interest rate that determines the monetary policy stance or rate.
The bill usually have fixed maturity periods of 28, 63, 91 and 182 days.
Source: norvanreports.com
