The Bank of Ghana central bank bills programme has absorbed GH¢11.39 billion from the financial system following the latest sale of 14-day securities aimed at tightening liquidity and supporting monetary stability.
According to the results of Tender 868, conducted on Monday, June 29, 2026, the central bank issued GH¢11.39 billion worth of 14-day Bank of Ghana bills as part of its regular open market operations designed to regulate liquidity within the banking sector.
The auction attracted bid rates ranging from 10.40 percent to 10.46 percent per annum, with all successful bids allotted within the same discount-rate range.
The corresponding interest-rate range stood between 10.44 percent and 10.50 percent, while the weighted average discount rate settled at 10.45 percent and the weighted average interest rate at 10.49 percent.
Supporting inflation and exchange rate stability
Unlike Treasury bills issued by the government to finance public expenditure, Bank of Ghana bills are monetary policy instruments used to absorb excess liquidity from the banking system and enhance the effectiveness of monetary policy.
The latest operation reflects the central bank's continued efforts to sterilise excess cash in the financial system as it pursues its broader objectives of reducing inflationary pressures and maintaining exchange rate stability.
Market analysts note that managing liquidity remains critical because excessive cash within the banking sector can exert downward pressure on short-term interest rates, increase demand for foreign exchange and weaken monetary policy transmission.
By issuing short-term securities, the central bank temporarily withdraws surplus funds from commercial banks, helping to maintain orderly money market conditions and improve policy effectiveness.
Flexible monetary policy tool
The use of the 14-day tenor gives the Bank of Ghana flexibility to respond quickly to changing economic conditions, particularly as inflation expectations, exchange rate movements and liquidity levels continue to influence financial markets.
The weighted average interest rate of 10.49 percent also provides an indication of prevailing pricing conditions in the short-term money market, while the sizeable GH¢11.39 billion issuance underscores the scale of liquidity management currently being undertaken.
The tender results, signed by Secretary to the Bank Aimee Vyda Quashie in Notice to Banks and the Public No. 868, reaffirm the Bank of Ghana's reliance on short-term securities to maintain financial stability as the economy continues its recovery and inflation remains on a downward trajectory.
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