BoG Mops Up GH¢17.2bn in Major Liquidity Operation Amid Cedi Stability Efforts | The Bank of Ghana (BoG) has mopped up GH¢17.24 billion from the banking system through the issuance of 14-day bills, underscoring its commitment to maintaining tight liquidity conditions as it seeks to sustain progress in inflation control and exchange rate stability.
The liquidity absorption exercise, one of the largest conducted by the central bank in recent months, reflects ongoing efforts to prevent excess liquidity from fuelling inflationary pressures, speculative foreign exchange demand and broader macroeconomic imbalances.
According to Notice to Banks and the Public No. 865, the June 8, 2026, auction recorded total allotments of GH¢17.24 billion. Bid rates ranged between 10.46% and 10.95%, while the weighted average interest rate settled at 10.98%, indicating prevailing conditions in the short-term money market.
The operation highlights the central bank’s continued reliance on open market operations as a key monetary policy tool to manage liquidity within the financial system. The move comes at a time when authorities are working to preserve gains made in reducing inflation, stabilising the cedi and supporting the broader economic recovery.
Unlike Treasury bills, Bank of Ghana bills are not intended to finance government expenditure. Rather, they serve as instruments for regulating liquidity and ensuring that money market conditions remain consistent with the central bank’s monetary policy objectives.
By withdrawing excess funds from the banking sector, the BoG aims to limit inflationary risks, curb undue pressure on the foreign exchange market and keep short-term interest rates aligned with policy targets.
The substantial uptake of the 14-day bills also signals the central bank’s determination to closely monitor and manage liquidity levels amid evolving economic and market conditions.
For banks and other financial institutions, the instrument provides a secure short-term investment opportunity while enabling the central bank to manage liquidity without adding to government borrowing requirements.
BoG Mops Up GH¢17.2bn in Major Liquidity Operation Amid Cedi Stability Efforts | AviationGhana
