The Financial institution of Ghana (BoG) has reduce the rate of interest on the 56-day invoice by a big margin.
The public sale outcomes launched on July 21, 2025, confirmed that the Central Financial institution supplied 11.9 -13.0 % to the buyers.
That is regardless of buyers requesting charges of 11.7-24.0% for the 56-day invoice.
In its public sale outcomes on July 7, 2025, the Central Financial institution supplied 26.5% to buyers that participated within the provide.
Because the Central Financial institution resumed the issuance of its short-term payments on April 30, 2025, the yields have been round 26 to 27%.
Affect
The speed quoted by Financial institution of Ghana for its short-term payments has been influenced by the coverage price, which is at the moment round 28%.
This has resulted in some market analysts arguing that if the Financial institution of Ghana is dropping yield on the short-term payments, then the following transfer by the regulator may sign a reduce within the coverage price by some important margin.
Others have additionally instructed Pleasure Enterprise that the Financial institution of Ghana could also be attempting to discover the market and see how buyers will reply to a decrease price on its payments.
Databank Analysis, in its latest market evaluation, argued that the restricted quantity supplied throughout Financial institution of Ghana’s short-term public sale was aimed toward pushing buyers to take part within the Authorities of Ghana treasury payments.
Background
The Financial institution of Ghana earlier this 12 months resumed the issuance of its short-term payments as a part of efforts to mop up extra liquidity and management inflation. The Central Financial institution, since January 2018, has been conducting weekly open market operations by auctioning Financial institution of Ghana securities, with the issuance of the 14-day and 56-day payments each week.
The 14-day instrument is issued on the coverage price, whereas the 56-day instrument is issued at a aggressive market price, permitting banks to cite their costs.
The target of the 56-day Open Market Operations (OMO) instrument is to increase the maturity profile of the instrument and mop up extra liquidity.
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DISCLAIMER: The Views, Feedback, Opinions, Contributions and Statements made by Readers and Contributors on this platform don’t essentially characterize the views or coverage of Multimedia Group Restricted.
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