Ghana’s interest rates have returned to an upward trajectory for the first time in a month, as the government continued to borrow heavily on the money market to finance its expenditure.
According to auction results by the Bank of Ghana, the rate on the 91-day T-bill went up marginally to 29.56% from the previous week’s 29.49%.
The 182-day bill also surged to 31.76% from the preceding week’s 31.75% whilst the one-year bill increased by 21 basis points to 33.44%.
Meanwhile, the government accepted all the bids for the treasury bills tendered to the tune of ¢3.917 billion. Its ambitious target of ¢5.618 billion, however, fell short by 30.27%.
For the second time in a year, the 364-day bill was the most subscribed. About ¢1.854 billion worth of bids were tendered which the government accepted all.
It was followed by the 91-day T-bill in which ¢1.33 billion were accepted. The 182-day bill witnessed a subscription of ¢722.99 million.
The treasury market is presently the only source of financing for the government as the bond and external debt markets have been shut down for now. This is due to the debt restructuring the government is undertaking.
