The Bank of Ghana (BoG) could be mopping up excess liquidity in the economy with the re-opening of three Government of Ghana bonds.
By this, the central bank is seeking to reduce money in circulation to tame inflation and other economic impacts.
The settlement for the three bonds is expected to be made today [September 3, 2018].
The three bonds comprise two two-year notes which will mature in March and April 2019.
The third is a three year bond that matures in September 2019.
According to the calendar issued by the Bank of Ghana, auctioning for the bids which opened to banks and investors both local and foreign, concluded last Thursday [August 30, 2018].
The instrument was originally issued at an interest rate of 24 percent according to sources.
Even though the rate could be lower, investors will be entitled to the current interest rate plus all interests accrued since the most recent coupon.
For banks that may have participated in the exercise, they can trade the proceeds on the secondary market which means that they can sell to other investors on the stock exchange.
Some analysts say this may be an attempt by the central bank to mop up excess liquidity in the economy.
Again, it could be an opportunity to provide options for investors who may in search of investment options.