ACI Ghana weekly money market update – April 8, 2024

Below is Ghana’s money market update for the week beginning April 8, 2024.

KEY TAKEAWAYS

Short-term interest rates experienced a slight decrease last week. The rates for the 91-Day and 182-Day declined by 2 bps each to close at 25.73% and 28.23% respectively whilst the 364-Day declined 1 bps to print at 28.84%. Meanwhile, the BOG 56-day bill rate remained steady at 29.00% whilst the interbank interest rate inched up 11bps to close the week at 28.58%.

Expected maturities for the week of April 8, 2024, include:

>> GHS 2.64 billion in Treasury Bill maturities comprising:

1. GHS 2.143 billion in 91-day maturities due on April 8^th
2. GHS 353.35 million in 182-day maturities due on April 8^th
3. GHS 140.38 million in 364-day maturities due on April 8^th

>> GHS 3.83 billion in 56-day Bill maturities comprising:

1. GHS 1.42 billion due on April 8^th

2. GHS 2.41 billion due on April 8^th

The Treasury Bill auction again saw weakened demand being undersubscribed by 8.81%. The Government accepted a total of GHS 2.56 billion, well below the auction target of GHS 2.80 billion.

Money Market Term(s) of the Week

PV01:  PV01, or present value of a basis point, is the change in value of an asset due to a parallel change in the yield curve of one basis point (bp). It is also known as the basis point value (BPV). PV01 is a more general concept that applies to all fixed income securities.