OMO: Bank of Ghana raises GHS 977m in debt

The Bank of Ghana (BoG) has successfully raised GHS 977 million through the issuance of its bills, with a maturity period of 56 days, auctioned on May 20, 2024.

These bills were issued at an interest rate of 28.98 percent, as indicated by the auction results from the BoG.

However, the results did not disclose the total value of bids made by primary dealers or the specific target amount set by the BoG.

Central Bank bills, such as the BoG bills, are instrumental in the conduct of Open Market Operations (OMO), a key monetary policy tool.

These operations help regulate the money supply within an economy by managing the liquidity in the banking system through the sale of short-term securities in the primary market.

Typically, the funds raised from the auction of these bills are used to support the government’s short-term financial needs.

The interest rate on these bills is crucial as it reflects the central bank’s monetary policy stance, influencing broader economic conditions by impacting lending rates and overall economic activity.

The issuance of these bills at a high interest rate of 28.98 percent indicates a potentially tight monetary policy aimed at controlling liquidity and combating inflationary pressures in the economy.