Bank of Ghana reinstates 14-Day Bill as main tool for open market operations

The Bank of Ghana has announced that it is reverting to the 14-day bill as its primary instrument for Open Market Operations (OMO), a move aimed at enhancing liquidity management and strengthening monetary policy transmission.

Open Market Operations involve the buying and selling of government securities by the central bank to regulate money supply and influence interest rates. When the central bank purchases securities, it injects liquidity into the financial system, typically lowering interest rates and stimulating economic activity.

Governor Dr. Johnson Asiama revealed the decision during a press briefing in Accra on November 26, 2025, following the 127th Monetary Policy Committee (MPC) meeting, which also saw the monetary policy rate slashed 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,” Dr. Asiama announced.

He explained that reintroducing the 14-day bill is expected to improve liquidity absorption and enhance the effectiveness of interest rate adjustments across the banking sector.

According to the Governor, the measure is consistent with the Bank’s broader strategy to maintain price stability while supporting economic activity. He emphasized that the 14-day bill will now serve as the central mechanism for mopping up excess liquidity, ensuring that policy rate changes are transmitted more efficiently into the wider economy.