Minister of Finance, Ken Ofori-Atta
The interest rate on the government’s short-term Treasury market increased to 31 per cent on September 10, 2022, as investors continue to show interest in the short-term securities.
Though the government exceeded its target for the 13th week running, the cost of repaying these loans is expected to be high.
Since inflation begun rising about five months ago, interest rates have been escalating consistently to compensate investors.
This has boosted investor interest in Treasury bills.
However, the rising interest payments are a matter of concern to many economists, analysts and market watchers.
According to the auction results by the Bank of Ghana (BoG), the 91-day Treasury bill went for 29.48 per cent, compared to 29.04 per cent the previous week, whilst the 182-Day T-bill traded at 31.05 per cent, as against 30.22 per cent the earlier week.
Similarly, the T-bills sale was oversubscribed by 35 per cent to the tune of ¢2.287 billion.
Though the investors still showed more interest in the 3-months bill that of the 6 months bill also witnessed significant interest this time around.
Also, ¢860.92 million worth of the bids came from the 182-day bill but ¢815.70 million was accepted.
For the 91-day bill, ¢1.427 billion of the bids were tendered in, but ¢1.410 billion were accepted.
The target for this auction was ¢1.682 billion.
A Business Desk Report