ACI Ghana weekly money market update – August 12, 2024

Below is Ghana’s money market update for the week beginning August 12, 2024.

KEY TAKEAWAYS

The yield for 91-Day increased by 0.04 bps, to close at 24.83%, 182-Day and 364-Day Treasury Bill and BOG 56-day bill were flat at 26.76%, 27.86% and 29.00% respectively. The interbank rate rose by 1 bp to close at 28.84%.

Expected maturities for the week of August 12, 2024, include:

>> GHS 6.14 billion in Treasury Bill maturities comprising:

1. GHS 3.82 billion in 91-day maturities due on August 12^th
2. GHS 1.63 billion in 182-day maturities due on August 12^th
3. GHS 721.03 million in 364-day maturities due on August 12^th

>> GHS 3.50 billion in 56-day Bill maturities comprising:

1. GHS 1.36 billion due on August 12^th
2. GHS 2.14 billion due on August 14^th

The Treasury Bill auction demand on Friday was undersubscribed for a fifth consecutive week by 19.17%. A total of GHS 4.102 billion in bids was accepted. The amount accepted was below the auction target of GHS 6.557 billion by GHS 1.257 billion.

Money Market Term(s) of the Week

ISDA Master Agreement – Structure: This ISDA Master Agreement is in 3 parts, namely the main Master Agreement text, the Schedules and the Annexes. While the ISDA master agreement is standard, its terms and conditions are defined and amended using its elections in its schedules and Annexes. The most frequently negotiated annex is the Credit Support Annex (CSA) which enables the parties to mitigate their credit risk by defining the terms and conditions under which they are required to provide credit support/collateral