Interest rates near 36% as government hits treasury bill target

Interest rates approached 36% in the money market, although below October 2022 inflation of 40.4%.

This indicates that the return on investment remains negative.

According to the results of the treasury bill auction, the government registered an oversubscription for the first time in six consecutive weeks.

This could signal some level of investor confidence as the government negotiates a deal with the International Monetary Fund for a program. Here again, liquidity has seen some improvement.

In fact, the government obtained approximately ¢1.65 billion, an increase of 41.7% in the sale of short-term securities.

Part of the sale came from 91-day treasury bills, for which about ¢1.38 billion was mobilized by the government. The offers presented were for ¢1.38 billion, all of which the government accepted.

This translated into a return of 35.19%, up from 34.3% the previous week.

For 182-day treasury bills, the bids presented were ¢274.99 million, all of which the government accepted. The interest rate was 35.98%, 0.58% higher than last week.

Securities Tenders submitted (GH¢) Bids Accepted (GH¢)
91 day invoice 1.381 billion 1.381 billion
182 day invoice 274.99 million 274.99 million
Total 1.656 billion 1.656 billion
Target 1.168 billion 1.168 billion

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