Bank of Ghana introduced the weekly treasury bills tender system in 1987. The tender was opened to banks, discount houses brokerage firms and the public at large, although the public had to submit their applications through the banks. The tender was operated side by side with the tap sales where customers could purchase bills directly from Bank of Ghana.
The Wholesale Auction System which was introduced on March I, 1996, is intended to help achieve the development of the secondary market. At the initial stage all banks and selected brokerage firms and other non-bank financial institutions were permitted to participate in the weekly wholesale auctions. Each is designated as a Primary Dealer (PD). PDs can participate in the primary auction as principal for their own accounts and/or as agent on behalf of their customers.
The Bank of Ghana at this stage stopped issuing certificates and commenced the book entry system of registering, issuing and redemption of Government Securities.The auction is intended to increase competition among dealers and thereby contribute to a more efficient, dynamic and vibrant secondary market. Individuals and other firms and institutions are expected to obtain their requirements from the dealers.
The Bank of Ghana introduced the Central Securities Depository in November 2004 to further enhance the book entry system of registering holdings and to re-enforce the non-issue of certificates for Government securities. The individual investor holdings are available in the CSD system which can be assessed through the Depository Participants.Alongside the establishment of the depository, the Bank of Ghana introduced the electronic Auction Bidding System in 2004. Through this system, participants submit bids electronically to Bank of Ghana from workstations in their various locations.
