The Bank of Ghana (BoG) has withdrawn GH¢17.06 billion from the financial system through its latest short-term bills auction, underscoring the central bank’s ongoing efforts to manage liquidity and maintain monetary stability.
According to the results of Tender 864 conducted on June 1, 2026, the central bank sold GH¢17,058.00 million worth of 14-day Bank of Ghana bills.
The instrument, issued under ISIN GHCBAGH01082, attracted strong market interest, with bid rates ranging between 10.4000 per cent and 11.0000 per cent per annum.
The auction results showed that all bids submitted within the accepted range were allotted in full.
Interest Rates Ease
The weighted average discount rate for the 14-day bill settled at 10.9028 per cent, while the weighted average interest rate stood at 10.9487 per cent for the period from June 1 to June 2, 2026.
Market analysts say the decline in the weighted average interest rate to below 11 per cent reflects easing conditions in the short-term money market and aligns with the broader downward trend in yields across Ghana’s fixed-income market.
“The weighted average interest rate stood at 10.9487 per cent,” the auction results indicated, highlighting softer borrowing costs compared to previous liquidity operations.
Supporting Monetary Stability
The latest operation forms part of the Bank of Ghana’s strategy of issuing short-term securities to absorb excess liquidity from the banking system.
By mopping up surplus funds, the central bank seeks to influence money market conditions, curb inflationary pressures and support exchange rate stability.
Although substantial, the GH¢17.06 billion liquidity withdrawal was lower than some recent sterilisation exercises in which the central bank absorbed more than GH¢20 billion from the market.
The continued use of short-term bills signals the Bank of Ghana’s commitment to maintaining price stability while ensuring that liquidity levels remain consistent with its broader monetary policy objectives.
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