The Bank of Ghana BoG) has withdrawn GHS15.28 billion from the financial system through its 14-day Bill auction, as part of ongoing open market operations aimed at tightening liquidity and reinforcing efforts to keep inflation under control.
The liquidity mop-up forms part of the central bank’s broader monetary policy strategy to manage excess cash in circulation and maintain price stability. By issuing short-term securities, the BoG effectively reduces the amount of money available in the banking system, helping to curb inflationary pressures.
According to the central bank’s September 2025 Monthly Statistical Bulletin, Ghana’s total money supply (M2+) stood at GHS353 billion. The M2+ measure captures the total stock of money in the economy, including physical cash in circulation and highly liquid financial assets such as bank deposits and money market instruments.
The latest operation comes at a time when inflation is showing signs of easing. Data indicate that the inflation rate slowed to 3.6 percent at the end of January 2026, reflecting improved macroeconomic conditions and the impact of sustained monetary tightening.
Results from the 14-day Bill auction show strong investor appetite for the short-term instrument. Bids were submitted at interest rates ranging between 11.88 percent and 11.94 percent per annum, with all accepted bids allotted within that band. The auction settled at a weighted average yield of 11.99 percent per annum.
The strong demand underscores continued confidence in central bank securities, as investors seek relatively safe and short-duration instruments amid evolving market conditions.
