The Ghanaian government successfully garnered GH₵4.977 billion in its most recent treasury bill auction on November 24, 2023, despite receiving bids totaling GH₵5.008 billion. The auction results, released by the Bank of Ghana, revealed persistent high interest rates, with an average of 31.5% across the various debt instruments.
In the latest auction, bids for the 91-day and 182-day treasury bills reached GH₵3.3 billion and GH₵377 million, respectively. The government accepted bids amounting to GH₵3.27 billion for the 91-day bills and GH₵375 million for the 182-day bills. Additionally, all GH₵1.32 billion in bids for the 364-day bills were accepted by the government.
Despite some minor decreases in interest rates for the 91-day and 182-day bills—now standing at 29.49% and 31.75%, respectively—the 364-day bill maintained a high-interest rate of 33.23%. The consistent oversubscription of bills in recent auctions indicates sustained investor interest, with the latest results showing bids exceeding the set target by GH₵1.39 million.
Concerns about the government’s ability to manage maturities have been raised, but the International Monetary Fund (IMF) contends that current rates, while high, remain within an acceptable range and are still lower than inflation.
The breakdown of subscriptions and acceptances in the latest auction reveals a total subscription of GH₵3.27 billion for the 91-day bill, GH₵375.89 billion for the 182-day bill, and GH₵1.323.80 million for the 364-day bills. Looking ahead, the government has set an ambitious target of GH₵5.618 billion for its next auction, scheduled for December 1, 2023. Despite the prevailing economic challenges, the government aims to raise GH₵5.61 billion in the upcoming issuance as it navigates the dynamics of the financial market.
27th November, 2023
By: Delino Gayweh
Serrari Financial Analyst
Article and News Disclaimer
The information provided on www.serrarigroup.com is for general informational purposes only. While we strive to keep the information up to date and accurate, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.
www.serrarigroup.com is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information on the website is provided on an "as-is" basis, with no guarantee of completeness, accuracy, timeliness, or of the results obtained from the use of this information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.
In no event will www.serrarigroup.com be liable to you or anyone else for any decision made or action taken in reliance on the information provided on the website or for any consequential, special, or similar damages, even if advised of the possibility of such damages.
The articles, news, and information presented on www.serrarigroup.com reflect the opinions of the respective authors and contributors and do not necessarily represent the views of the website or its management. Any views or opinions expressed are solely those of the individual authors and do not represent the website's views or opinions as a whole.
The content on www.serrarigroup.com may include links to external websites, which are provided for convenience and informational purposes only. We have no control over the nature, content, and availability of those sites. The inclusion of any links does not necessarily imply a recommendation or endorsement of the views expressed within them.
Every effort is made to keep the website up and running smoothly. However, www.serrarigroup.com takes no responsibility for, and will not be liable for, the website being temporarily unavailable due to technical issues beyond our control.
Please note that laws, regulations, and information can change rapidly, and we advise you to conduct further research and seek professional advice when necessary.
By using www.serrarigroup.com, you agree to this disclaimer and its terms. If you do not agree with this disclaimer, please do not use the website.
www.serrarigroup.com, reserves the right to update, modify, or remove any part of this disclaimer without prior notice. It is your responsibility to review this disclaimer periodically for changes.
Serrari Group 2023
