Bank of Ghana borrows Ghs 2.6 billion from domestic creditors

The Central Bank has borrowed some Ghs 2,648 million from the domestic debt market.

The Bank of Ghana (BoG) borrowed the aforementioned amountthrough the issuance of a 14-day BoG bill on Wednesday, October 20.

Value of bids made by banks, pension funds, insurance companies and other players in the auction process for the bank’s short-term security is unknown as that was not noted in the auction results made available by the bank.

It is unclear if the Central Bank was able to meet its target as that information was also not disclosed in the auction results.

The 14-day BoG bill was auctioned at a discount rate of 13.43 percent by the Central Bank.

The BoG bill mostly employed through Open Market Operations (OMO), serve as a monetary policy tool used by the Central Bank to regulate money supply in the economy.

The main function of the BoG bill is to manage the liquidity of the local banking system through the sale of short-term securities on the primary market.

The interest rate or discount rate on the BoG bill is the key interest rate that determines the monetary policy stance or rate.

The BoG bill usually has fixed maturities of 14, 28, 56, 91 and 182 days.

Source: norvanreports

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