Source: newsthemegh.com
About GH¢1.9 billion has been raised by the Bank of Ghana (BoG) through the issue of its bills on the local debt market.
The Central Bank held an auction of the 56-day-maturity BoG bills on Wednesday, January 17, 2024.
The bills were auctioned at a discounted rate of 28.6 percent, according to the BoG’s auction results.
The BoG’s aim and the amount bid by banks were not disclosed in the auction results.
Central banks use bills, or in this case, BoG bills, as a weapon for monetary policy through Open Market Operations (OMO). This allows them to control the amount of money in circulation.
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 bill auction to cover its immediate needs.