By: IGNEWSS
The Bank of Ghana (BoG), has raised some GHS 1.1 billion from the auction of its 56-day maturity debt security.
The debt security was auctioned by the Central Bank on Wednesday, January 24, 2024.
The security, per the auction results from the BoG, was auctioned at an interest rate of 29.9%.
The auction results released by the BoG did not indicate the value of bids made by primary dealers as well as the target of the apex bank.
The debt security known as the BoG bills is mostly employed through Open Market Operations (OMO), and serve as a monetary policy tool used by Central Banks to regulate money supply.
The main function of the 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