Demand for treasury bills dipped following three consecutive weeks of soaring investor interest, attributed to the significant fall in interest rates despite investors, largely banks having the opportunity to invest in the financial market.
For the first time in four weeks, government’s treasury bills sale was undersubscribed by 23.83% to the tune of ¢2.44 billion. Also, interest rates remain unchanged despite a significant fall in the past three weeks.
It appears the investors have shifted their attention to the Bank of Ghana bills, which is offering a rate of 28%.
According to data from the Bank of Ghana, the government secured about ¢1.41 billion from the 91-day bill whilst a little about ¢553 million and ¢468 million were gotten from the 182-day and 1-year T-bills.
The statistics reveal that interest rates remain same as the yield on the 91-day went for 18.87% from the previous week’s of 18.52%. The yield on the 6-month bill was however estimated at 21.43%, compared with 21.27%, a week ago.
Meanwhile the Monetary Policy Committee (MPC) of the Bank of Ghana (BoG) is expected to announce a new policy rate later today.
The committee met last week to review the economy on issues about inflation, cedi stability and banking sector stability domineering their meeting discussions.
However, some analysts are of the view that the policy rate, which currently stands at 28%, may again go up marginally, as the Bank of Ghana moves to check inflation, which is still high.
Meanwhile, Alhassan Andani, a Former President of the Ghana Association of Bankers (GAB), said the Bank of Ghana must maintain the policy rate if it really wants to stimulate growth.
“Their inflation targeting is a policy and therefore, they have to reflect what true inflation is. But there are other factors; the demand and use for money. They have to target whatsoever their inflation is. If for example, the high interest rates, which was driven by the high T-bills was the one driving other factor prices, then of course, they should stick there. Let the T-bill rate drag down the other and then we will achieve some kind of parity.”
Alhassan Andani
Ghana’s Export Earnings Inches Up To $2.7 Billion
Data from the Bank of Ghana shows that it inched up to $2.7 billion at the end of February this year compared to $2.4 billion recorded for same period last year, 2022.
Ghana’s earnings from Gold, Cocoa, Crude Oil and other exports continue to pick up strongly.
With the exception of crude oil that saw a marginally dip in earnings ending February this year, all the other exports in 2023 realized an appreciation than what was realized in same period in 2022.
The central bank of Ghana is also pegging the amount spent on imports for the first two months of 2023 at $2billion, showing a significant drop, compared to what the country spent on imports for same period in 2022.
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