ACI Ghana weekly money market update – February 12, 2024

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

KEY TAKEAWAYS

Last week short-term interest rates continued the decline.

The yield on the 91-Day, 182-Day and 1-Year T-Bill rates fell by 30bps, 36bps and 40bps to close at 28.00%, 30.44% and 31.00% respectively. BOG 56-day bill rate fell by 2bps to 29.98%. Interbank interest rates fell by 25bps to 29.09%.

Expected maturities for the week of February 12th, 2024, include:

>> GHS 4.28 billion in Treasury Bill maturities comprising:

1. GHS 3.15 billion in 91-day maturities due on February 12^th
2. GHS 261.69 million in 182-day maturities due on February 12^th
3. GHS 875.68 million in 182-day maturities due on February 12th

>>GHS 5.66 billion in 56-day BOG Bill maturities comprising:

1. GHS 2.38 billion due on February 12^th
2. GHS 3.27 billion due on February 14^th

The Treasury Bill auction on Friday witnessed robust demand, surpassing the target by 51.82%. Responding to the demand, the Government accepted a total of GHS 6.847 billion, surpassing the auction target of GHS 4.587 billion by GHS 2.260 billion.

Money Market Term(s) of the Week

Swap Settlement date / effective date: On settlement date, the calculation of interest payments from the swap starts. Regarding the settlement date one differentiates between two types of swaps:

Spot swaps: settlement date is usually two days after the trading date.

Forward swaps: settlement date is on a different date than the two days after trading date.