ACI Ghana weekly money market update – April 22, 2024

Below is Ghana’s money market update for the week beginning April 22, 2024.

KEY TAKEAWAYS

Short-term interest rates continued falling broadly. The yield on the 91-Day, 182-Day and 1-Year T-Bill rates fell by 9bps, 25bps and 25bps to close at 25.65%, 27.90%, and 28.50% respectively. BOG 56-day bill and interbank rate remained at 29.00% and 28.74% respectively.

Expected maturities for the week of April 22, 2024, include:

>> GHS 3.16 billion in Treasury Bill maturities comprising:

1. GHS 2.63 billion in 91-day maturities due on April 22^nd
2. GHS 391.20 million in 182-day maturities due on April 22^nd  
3. GHS 143.21 million in 364-day maturities due on April 22^nd

>> GHS 4.94 billion in 56-day Bill maturities comprising:

1. GHS 850.26 billion due on April 22^nd

2. GHS 4.09 billion due on April 24^th

The Treasury Bill auction demand on Friday witnessed weakness being undersubscribed by just 0.91%. The Government accepted a total of GHS 3.341 billion, slightly below the auction target of GHS 3.372 billion by GHS 30.55 million

Money Market Term(s) of the Week

Forward Rate Agreement (FRA): The forward, or future rate agreement, is a contract between two parties to fix a future interest rate. This contract defines the interest rate for a future period based on an agreed principal. If on the agreed date (fixing date) the FRA rate differs from the current marketrate (reference rate), a settlement payment depending on the difference must be paid by one of the parties. The principal is not exchanged and there is no obligation by either party to borrow or lend capital.