The Bank of Ghana (BoG) has withdrawn approximately GHS11.2 billion from the financial system through its 14-day bill auction, as part of ongoing open market operations aimed at tightening liquidity and sustaining the downward trend in inflation.
Data from the central bank’s September 2025 Monthly Statistical Bulletin shows that total money supply (M2+) stood at GHS353 billion. This measure includes cash in circulation, coins, and highly liquid assets such as bank deposits and money market funds. The latest liquidity mop-up comes at a time when inflation has eased to 3.6 percent as of end-January 2026.
Results from the 14-day bill auction indicate strong investor demand for short-term instruments issued by the central bank. Bids were submitted within a narrow range of 11.88 percent to 11.93 percent per annum, with all accepted bids falling within that band. The auction recorded a weighted average discount rate of 11.93 percent, translating into an effective interest rate of 11.99 percent per annum.
Investor appetite for government securities remains strong, as reflected in the most recent Treasury bill auction. For the tenth consecutive week, demand significantly outpaced the government’s target.
Total bids reached GHS22.66 billion against a target of GHS6.41 billion, representing an oversubscription of about 253 percent. The government accepted GHS8.99 billion from the bids received — approximately GHS2.57 billion above its initial target.
The strong demand comes despite a general decline in yields, signalling continued investor confidence in government securities, particularly at the longer end of the short-term maturity spectrum.
A breakdown of the auction shows that the 364-day bill attracted bids of about GHS7.76 billion, with GHS3.48 billion accepted. The 182-day bill recorded bids of GHS7.26 billion, out of which GHS2.08 billion was taken up. Meanwhile, the 91-day bill received bids totalling nearly GHS7.64 billion, with GHS3.41 billion accepted.
