The Bank of Ghana has withdrawn about GH¢11.8 billion from the financial system through its 14-day bill auction as part of efforts to tighten liquidity and support the ongoing disinflation process.
The move forms part of the central bank’s open market operations, which are designed to regulate money supply and stabilise prices.
According to data published in the Bank’s September 2025 Monthly Statistical Bulletin, total money supply (M2+) stood at GH¢353 billion. Money supply refers to the total amount of currency in circulation, including cash, coins and highly liquid assets such as demand deposits and money market instruments.
The latest liquidity absorption comes at a time when inflation has been easing. At the end of January 2026, the inflation rate had slowed to 3.6 per cent, reflecting a sustained downward trend in price pressures.
Results from the 14-day bill auction indicate strong investor demand for short-term central bank instruments. Bids were submitted at rates ranging between 11.88 per cent and 11.94 per cent per annum, with all successful bids allotted within that band.
The auction closed at a weighted average discount rate of 11.93 per cent, translating into an interest rate of 11.99 per cent per annum.
Investor appetite for short-dated securities was also evident in the government’s most recent Treasury bill auction, which recorded its 11th consecutive week of strong demand.
Total bids submitted amounted to GH¢14.82 billion, far exceeding the government’s target of GH¢5.80 billion. This represents an oversubscription rate of about 155.3 per cent.
Out of the total bids received, GH¢8.80 billion was accepted, roughly GH¢3 billion above the initial target. The outcome signals sustained liquidity in the market and continued investor confidence in government securities despite the central bank’s liquidity-tightening measures.
