Bank of Ghana Withdraws GH¢19bn from Market Through 14-Day Bill Auction

The Bank of Ghana has withdrawn GH¢19.06 billion from the domestic money market through its latest 14-day bill auction as part of efforts to control excess liquidity in the financial system.

According to the results of Tender 861, conducted on May 11, 2026, the short-term bills were issued at a weighted average discount rate of 10.4579%, representing an effective investment yield of 10.50% over the two-week period.

The auction received bids within a rate range of 10.40% to 10.49%, with most successful applications accepted within that same bracket.

The large-scale liquidity absorption reflects the central bank’s continued reliance on short-term monetary instruments to regulate money supply and maintain stability in short-term interest rates.

BoG bills are regularly used by the central bank to absorb excess funds from commercial banks in order to reduce the risk of inflationary pressures and instability in the foreign exchange market.

The latest liquidity operation comes amid a significant decline in Ghana’s interest rate environment, driven by easing inflation and recent monetary policy adjustments.

Despite improving macroeconomic conditions, the size of the auction indicates that the central bank remains vigilant about liquidity levels within the banking sector.

For commercial banks, the 14-day bill continues to offer a relatively secure short-term investment opportunity at a time when yields on Treasury bills and other government securities have fallen considerably.

The operation also highlights the Bank of Ghana’s proactive liquidity management approach as it works to maintain price stability, which remains one of its primary policy objectives.