The Bank of Ghana (BoG) has absorbed GH¢19.06 billion from the domestic money market through its latest 14-day bill auction.
Results from Tender 861, conducted on May 11, 2026, showed that the short-term bills were allotted at a weighted average discount rate of 10.4579%, translating into an effective interest rate of 10.50% for the investment period.
The auction attracted bid rates ranging between 10.40% and 10.49%, with successful bids allotted largely within the same range.
The sizeable liquidity mop-up highlights the Bank of Ghana’s ongoing use of short-term instruments to regulate money supply and stabilise short-term interest rates within the financial system.
BoG bills are commonly deployed as a monetary policy tool to absorb excess liquidity from banks to prevent surplus funds from creating inflationary pressures or volatility in the foreign exchange market.
The latest operation comes at a time when Ghana’s interest rate environment has adjusted sharply downward following sustained declines in inflation and recent monetary policy easing measures.
However, the scale of the auction suggests the central bank remains cautious about liquidity conditions within the banking sector, even as macroeconomic indicators continue to improve.
For banks, the 14-day bill provides a relatively low-risk short-term investment option at a time when yields on Treasury bills and other government securities have moderated significantly.
The latest auction also reinforces the Bank of Ghana’s active liquidity management strategy, with the central bank seeking to achieve its core mandate of maintaining price stability.
