The Bank of Ghana 14-day bill auction has withdrawn approximately GH¢13.9 billion from the banking system as part of ongoing open market operations aimed at tightening liquidity and sustaining the country’s disinflation trend.
Data published in the September 2025 Monthly Statistical Bulletin by the Bank of Ghana showed that broad money supply (M2+) stood at GH¢353 billion. The M2+ measure encompasses currency in circulation, including notes and coins, alongside demand deposits and other highly liquid financial instruments.
The latest liquidity absorption exercise comes at a time when inflationary pressures continue to ease. Inflation slowed to 3.6 percent at the end of January 2026, reinforcing the central bank’s cautious monetary stance.
Strong Investor Appetite
The scale of the mop-up through the short-term instrument reflects sustained investor demand for central bank securities. Auction results revealed that bids were submitted within a yield range of 11 percent to 11.94 percent per annum, with successful allotments made within the same range.
The auction ultimately settled at a weighted average discount rate of 11.90 percent, translating into an effective annual interest rate of 11.96 percent.
Market analysts say the robust participation underscores confidence in the central bank’s liquidity management strategy, even as yields remain attractive relative to prevailing inflation levels. By withdrawing excess liquidity from the system, the Bank of Ghana aims to curb potential inflationary pressures and maintain macroeconomic stability.
The operation forms part of broader efforts to manage money supply growth while supporting a stable exchange rate environment. With inflation moderating and liquidity conditions tightening, monetary authorities appear focused on consolidating gains made in restoring price stability.
Economists note that sustained discipline in open market operations will be crucial in anchoring inflation expectations and preserving the downward trend in consumer prices in the months ahead.
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