OMO: Central Bank auctions GHS 407m debt
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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The Bank of Ghana has auctioned short-term debt instruments worth some GHS 407m.
The auction of the debt instruments with a maturity period of 56 days took place on Wednesday, April 3, 2024.
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The short-term debt instruments known as BoG Bills were auctioned at an interest rate of 29%.
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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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