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
