The Bank of Ghana (BoG) has successfully raised GH¢2.3 billion through the issuance of 56-day bills during its latest Open Market Operation (OMO) on Monday, May 26, 2025. This move underscores the central bank’s ongoing commitment to managing excess liquidity and fortifying its monetary policy stance.
The auction cleared an interest rate of 28%, aligning with the current monetary policy rate, reflecting the BoG’s efforts to anchor inflation expectations and stabilize the cedi amidst broader macroeconomic adjustments. The central bank did not disclose the total bids submitted or specify a target amount for the operation, leaving room for market speculation.
The 56-day bills, a short-term debt instrument under the central bank’s liquidity management framework, are pivotal in steering short-term interest rates and sterilizing liquidity within the banking sector. Although distinct from traditional government debt, the proceeds from these bills are often utilized for short-term Treasury financing.
Market analysts noted that the 28% yield mirrors the BoG’s current tightening posture, consistent with its decision to maintain the monetary policy rate at 28% during the most recent Monetary Policy Committee (MPC) meeting. This approach signals the bank’s dual focus: curbing inflation and supporting Ghana’s economic recovery under an IMF-backed stabilization program.
The issuance is also seen as part of a broader strategy to build confidence in the local currency while ensuring adequate liquidity control. As the BoG navigates the complexities of inflationary pressures and currency stabilization, the successful auction reflects the market’s alignment with the central bank’s policy direction.
By leveraging instruments like the 56-day bills, the BoG continues to demonstrate its resolve to stabilize prices, manage liquidity, and foster macroeconomic stability amid ongoing reforms.
Story by: Mercy Addai Turkson #ahotoronline.com
