BoG reverts to 14-day bill as main tool for Open Market Operations

The Bank of Ghana says it will return to the use of the 14-day bill as its primary instrument for Open Market Operations (OMO).

Open Market Operations involve the buying and selling of government securities by a central bank to regulate the money supply and influence interest rates. By purchasing securities, the central bank injects money into the banking system, increasing liquidity and typically lowering interest rates to stimulate economic activity.

According to the Governor, Dr Johnson Asiama, the move forms part of additional policy measures introduced at the 127th Monetary Policy Committee (MPC) meeting, which also saw the central bank cut the monetary policy rate from 21.5 percent to 18 percent.

“In addition to the policy rate reduction, the Bank will return to the use of the 14-day bill as its main instrument for conducting Open Market Operations,” the Governor announced at a press briefing in Accra on November 26, 2025.

BoG cuts policy rate further from 21.5% to 18%

Dr Asiama explained that reinstating the 14-day bill is expected to strengthen liquidity management and improve the effectiveness of monetary policy transmission across the banking sector.

He noted that the move aligns with the Bank’s broader strategy to maintain price stability while supporting economic activity.

The Governor emphasised that the 14-day bill will now serve as the Bank’s main tool for absorbing excess liquidity from the market, which is a critical step in ensuring that interest rate changes translate more efficiently into the broader economy.



MA