The Bank of Ghana as withdrawn about GH¢26.5 billion from the banking system through its 14-day bill auction, intensifying efforts to manage liquidity and sustain the country’s ongoing disinflation trend.
The move forms part of the central bank’s open market operations, a key monetary policy tool used to regulate the amount of money circulating within the financial system. By absorbing excess liquidity, the Bank of Ghana aims to maintain stability in the financial sector and support the recent decline in inflation.
According to data from the central bank’s September 2025 Monthly Statistical Bulletin, Ghana’s broad money supply (M2+) currently stands at approximately GH¢353 billion. The M2+ measure includes currency in circulation such as notes and coins as well as highly liquid financial assets like demand deposits and certain money market instruments.
The liquidity absorption exercise comes as inflation continues to ease. Ghana’s headline inflation slowed further to 3.3 percent in February 2026, reinforcing signs that the country’s disinflation process is gaining traction.
Results from the latest 14-day bill auction also revealed strong investor interest in the short-term instrument issued by the central bank.
Bids submitted by market participants ranged between 11.89 percent and 11.94 percent per annum, with successful allotments made within the same yield band. The auction ultimately closed with a weighted average discount rate of 11.94 percent, translating into an effective annual interest rate of 11.99 percent.
The scale of the auction highlights continued demand for short-term government securities, even as the central bank maintains tight liquidity conditions to stabilize the economy.
