The Bank of Ghana (BoG) has absorbed GH¢8.48 billion from the financial system through its latest 14-day bill auction, marking a sharp decline in the volume of liquidity withdrawn compared with recent operations.
Results of Tender 873, held on Wednesday, August 5, 2026, show that the central bank sold GH¢8,478.44 million in 14-day Bank of Ghana bills as part of efforts to manage liquidity and keep short-term money-market conditions stable.
Despite the lower volume, the interest rate remained virtually unchanged. The bills attracted annualised bid rates between 10.40% and 10.46%, with bids within that range allotted in full.
The weighted average discount rate settled at 10.46%, while the corresponding weighted average interest rate was 10.50%.
Sharp drop in liquidity absorption
The latest auction represents a significant reduction in the amount of liquidity absorbed by the central bank in recent weeks.
At Tender 872 on July 27, the BoG sold GH¢16.57 billion in 14-day bills at an interest rate of about 10.50%. This means the latest GH¢8.48 billion operation was 48.83% lower than the previous auction.
The August 5 figure was also 8.37% below the GH¢9.25 billion absorbed on July 22 and 27.41% lower than the GH¢11.68 billion sold on July 15.
Earlier in July, the central bank had withdrawn GH¢14.42 billion through the same instrument on July 6.
The sharp fall in the volume absorbed could suggest that the amount of excess liquidity requiring sterilisation has moderated. However, the auction results alone do not establish the exact reason for the decline.
Changes in banks’ liquidity positions, government transactions, maturing securities and other money-market flows could all have influenced the amount offered and taken up.
Rate remains firmly anchored
While the volume of liquidity absorbed has fluctuated significantly, the pricing of the 14-day BoG bill has remained remarkably stable.
The weighted average interest rate was 10.50% on July 15, when GH¢11.68 billion was sold. It remained at 10.50% on July 22, when GH¢9.25 billion was absorbed, and again around 10.50% during the July 27 auction, despite the much larger GH¢16.57 billion sale.
The latest auction has maintained the same pattern.
This stability suggests that the central bank continues to have a firm grip on very short-term money-market rates, even as the quantity of liquidity it absorbs changes considerably.
Rates have eased from earlier in the year
The current 10.50% rate is also significantly lower than levels recorded earlier in 2026.
On March 16, the BoG sold GH¢19.44 billion in 14-day bills at a weighted average interest rate of 11.99%.
By May 4, the rate had fallen to 10.50%, with GH¢14.33 billion sold. It remained around that level in June, when the central bank absorbed GH¢16.14 billion.
The trend points to a gradual easing in short-term sterilisation rates, even though the BoG continues to remove substantial amounts of liquidity from the financial system.
Why the liquidity mop-up matters
The Bank of Ghana’s bills are monetary-policy instruments rather than government financing instruments. They allow the central bank to temporarily take excess funds out of the banking system and help manage short-term interest rates.
Large amounts of excess liquidity can affect the transmission of monetary policy by giving banks more funds to lend or invest in other markets, including foreign exchange.
By issuing short-term bills, the BoG can temporarily lock away some of those funds without necessarily changing the Monetary Policy Rate.
However, repeated liquidity sterilisation also comes with a cost because the central bank pays interest to institutions that invest in its bills.
The size of an individual auction should therefore not automatically be interpreted as a shift towards monetary tightening or easing. What matters is the broader balance between liquidity entering the financial system and the amount the central bank subsequently removes.
The key signal from Tender 873
For investors and financial institutions, the latest auction continues to provide a short-term investment opportunity at an annualised interest rate of around 10.50%, with funds committed for just 14 days.
The narrow range of bids, between 10.40% and 10.46%, also points to relatively stable expectations about short-term rates.
The main signal from Tender 873, therefore, is not a change in pricing but a change in quantity.
The Bank of Ghana continues to actively absorb liquidity, but the GH¢8.48 billion withdrawn on August 5 was considerably lower than the amounts absorbed during several recent July auctions.
Whether this marks the beginning of a sustained decline in the need for liquidity sterilisation or simply reflects normal fluctuations in banking-sector cash positions will become clearer in the coming auctions.
For now, the standout feature remains the stability of the rate: the 14-day Bank of Ghana bill continues to clear at around 10.50%, even as the volume of liquidity being absorbed changes sharply.
