The BoG bills with a maturity period of 56 days was auctioned by the Central Bank on Wednesday, January 17, 2024.
The bills, per the auction results from the BoG, were auctioned at a discounted rate of 28.6 percent.
The auction results did not indicate the value of bids made by banks as well as the target of the BoG.
Central Bank bills – in this case BoG bills – mostly employed through Open Market Operations (OMO), serve as a monetary policy tool used by Central Banks to regulate money supply.
The main function of Central Bank bills is to manage the liquidity of the banking system through selling short-term securities on the primary market.
In most cases, funds raised from the auction of the BoG bills are directly loaned to the government to support its short-term needs.
The interest rate on the Central Bank bills is the