The Bank of Ghana (BoG) has withdrawn GH¢19.06 billion from the domestic money market through its latest 14-day bill auction, as part of ongoing efforts to manage excess liquidity in the financial system.
Results from Tender 861, conducted on May 11, 2026, showed that the short-term instruments were allotted at a weighted average discount rate of 10.4579%, translating into an effective yield of about 10.50% over the investment period.
According to the auction results, bids were submitted within a range of 10.40% to 10.49%, with successful allocations largely falling within the same band.
The significant liquidity absorption highlights the central bank’s continued reliance on short-term monetary instruments to regulate money supply and stabilise interest rates in the economy.
BoG bills are typically used to soak up excess cash from commercial banks in order to reduce inflationary pressures and help manage potential volatility in the foreign exchange market.
The latest operation comes at a time when interest rates in Ghana have been trending downward, driven by easing inflation and recent monetary policy adjustments.
Despite the improved macroeconomic outlook, the scale of the auction suggests the central bank remains cautious about liquidity conditions within the banking sector.
For commercial banks, the 14-day bill remains a low-risk, short-term investment option, especially as yields on Treasury bills and other government securities continue to moderate.
The operation underscores the Bank of Ghana’s active liquidity management approach as it works to maintain price stability and support overall financial system stability.
