The Bank of Ghana has withdrawn GHS 11.28 billion from the financial system through its latest 14‑day bill auction, signalling the central bank’s continued resolve to keep liquidity tight and safeguard recent macroeconomic gains.
Results from Tender 864, conducted on June 3, 2026, show that the central bank successfully sold GHS 11.28 billion worth of its short‑term bills to banks and other market players.
The auction attracted bids at rates between 10.40% and 11.00% per annum, with all qualifying bids allotted in full. The 14‑day instrument cleared at a weighted average discount rate of 10.88% and a weighted average interest rate of 10.93%.
BoG bills remain one of the central bank’s most critical liquidity‑management tools, used to absorb excess cash from the banking system and influence short‑term money‑market conditions. Unlike Treasury bills, which finance government expenditure, BoG bills are deployed strictly for monetary policy operations.
The scale of the latest mop‑up indicates the central bank is actively sterilising liquidity to maintain price stability, especially as inflation—though still low—has ticked up for two consecutive months, rising to 3.7% in May from 3.4% in April.
For banks, the 10.93% weighted average interest rate provides a clear signal of prevailing short‑term liquidity conditions and the central bank’s policy posture following the Monetary Policy Committee’s decision to hold the policy rate at 14%.
The operation reinforces the Bank of Ghana’s cautious approach to monetary management—supporting economic recovery while guarding against excess liquidity that could fuel inflation or destabilise the exchange rate.
Market watchers will now be monitoring upcoming auctions to see whether the central bank maintains this elevated level of liquidity absorption, especially as government spending patterns, FX inflows and shifting market expectations continue to shape liquidity across the banking sector.
---CitiNewsRoom
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