ACI Ghana weekly money market update – August 26, 2024

Below is Ghana’s money market update for the week beginning August 26, 2024.

KEY TAKEAWAYS

The yields for 91-Day, 182-Day and 364-Day Treasury Bill were all down by 5 bps, 6 bps and 4 bps respectively and all closed at 24.79%, 26.69% and 27.81% respectively. The BOG 56-Day bill and interbank rate were flat at 29.00% and 28.84% respectively.

Expected maturities for the week of August 26, 2024, include:

>> GHS 5.00 billion in Treasury Bill maturities comprising:

1. GHS 2.76 billion in 91-day maturities due on August 26^th
2. GHS 1.34 billion in 182-day maturities due on August 26^th
3. GHS 433.28 million in 364-day maturities due on August 26^th

>> GHS 2.95 billion in 56-day Bill maturities comprising:

1. GHS 2.23 billion due on August 26^th
2. GHS 719.04 million due on August 28^th

The Treasury Bill auction demand on Friday was undersubscribed for the seventh consecutive week by 1.66%. A total of GHS 5.231 billion in bids was accepted. The amount accepted was below the auction target of GHS 5.319 billion by GHS 88.41 million.

Money Market Term(s) of the Week

ISDA Master Agreement – What the master agreement is really about:

1. Events: In the context of the ISDA Master Agreement, this refers to things that happen outside the contract that may affect the parties’ respective ability to perform their obligations under their transactions.

2. Payments and Deliveries: While the economic terms of a transaction are contained in the confirmation, there are a number of provisions within the ISDA Master Agreement that may affect or modify both the quantum and timing of payments and deliveries and the manner in which payments and deliveries are made.