Ghana: Reserve Bank auctions GHS 2.04bn debt for Government
In most cases, funds raised from the auction of the BoG Bills are directly loaned to the government to support its short-term needs. The interest rate on the Central Bank bills is the key interest rate that determines the monetary policy stance or rate.
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he Bank of Ghana (Reserve Bank) has auctioned short-term debt instruments worth some GHS 2.04bn.
The auction of the debt instruments with a maturity period of 56 days took place on Wednesday, March 20, 2024.
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The short-term debt instruments known as BoG Bills were auctioned at an interest rate of 28.99%.
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Central Bank bills – in this case BoG Bills – mostly employed through Open Market Operations (OMO), serve as a monetary policy tool used by Central Banks to regulate money supply in an economy.
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The main function of Central Bank bills is to manage the liquidity of the banking system through selling short-term securities on the primary market.
In most cases, funds raised from the auction of the BoG Bills are directly loaned to the government to support its short-term needs.
The interest rate on the Central Bank bills is the key interest rate that determines the monetary policy stance or rate.
Source:norvanreports
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