The Bank of Ghana (BoG) has withdrawn some GH¢13.34 billion from the banking system via its 14-day bill auction, in line with ongoing open market operations intended to tighten liquidity conditions and reinforce the disinflation trend.
The latest liquidity sterilisation exercise comes on the back of easing price pressures, with inflation moderating to 3.2 percent at the end of March 2026.
Auction results indicate continued strong investor interest in short-term central bank instruments, with bids clustered within a narrow range of 10.34 percent to 10.45 percent per annum. All accepted bids fell within this band.
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The auction cleared at a weighted average discount rate of 10.45 percent, implying an effective annualised yield of 10.49 percent.
The central bank’s liquidity tightening measures coincide with weaker demand at the government’s Treasury bill auction, where total bids of GH¢3.16 billion fell short of the GH¢4.67 billion target by roughly GH¢1.50 billion.
Out of the bids received, GH¢2.94 billion was accepted, leaving a gap of about GH¢1.72 billion relative to the issuance target.
The contrast between robust demand for BoG instruments and subdued interest in government securities points to a potential reallocation of investor portfolios toward central bank bills, reflecting shifting yield expectations and prevailing liquidity conditions in the market.
NorvanReports