Source: newsthemegh.com
A short-term debt product auctioned by Reserve Bank of Ghana brought in around GH¢2.04 billion.
On March 20, 2024, a Wednesday, the debt instruments having a 56-day maturity duration were put up for auction.
BoG Bills, which are short-term debt securities, were put up for auction with a 28.99% interest rate.
Central banks use bills, such as BoG bills in this instance, as a weapon for monetary policy through Open Market Operations (OMO). This allows them to control the amount of money in the economy.
The principal purpose of Central Bank bills is to control the banking system’s liquidity by offering short-term securities for sale on the primary market.
Most of the time, the government receives a direct loan of the money raised from the BoG Bills auction to cover its immediate needs.
The primary factor influencing the monetary policy stance or rate is the interest rate on Central Bank notes.