The Bank of Ghana has withdrawn about GH¢14.6 billion from the financial system through its 14-day bill auction conducted on March 4, 2026, as part of efforts to manage excess liquidity and support the country’s ongoing disinflation process.
The exercise forms part of the central bank’s open market operations, a monetary policy tool used to regulate the amount of money circulating in the banking system. By absorbing excess liquidity, the Bank of Ghana aims to maintain stability in the financial sector and reinforce the recent decline in inflation.
The liquidity sterilisation measure comes at a time when inflationary pressures in the economy are easing. Inflation slowed to 3.3 percent at the end of February 2026, reflecting the impact of the central bank’s tight monetary policy stance and improving macroeconomic conditions.
According to the Bank of Ghana’s September 2025 Monthly Statistical Bulletin, Ghana’s total money supply (M2+) stood at GH¢353 billion. Money supply represents the total amount of money circulating in an economy, including physical cash, coins, and highly liquid financial assets such as demand deposits and money market instruments.
Results from the latest auction indicate strong investor demand for the central bank’s short-term securities. Bids submitted for the 14-day instrument ranged between 11.88 percent and 11.94 percent per annum, with all successful bids allotted within that narrow band.
The auction closed with a weighted average discount rate of 11.93 percent, which corresponds to an equivalent interest rate of 11.99 percent per annum.
