ACI Ghana weekly money market update – February 19, 2024

Below is Ghana’s money market update for the week beginning February 19, 2024.

KEY TAKEAWAYS

Last week short-term interest rates continued the decline.

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 10bps, 4bps and 10bps to close at 27.89%, 30.39% and 30.90% respectively. BOG 56-day bill rate rose by 2bps to 29.00%. Interbank interest rates fell by 4bps to 29.05%.

Expected maturities for the week of February 19th, 2024, include:

>> GHS 4.15 billion in Treasury Bill maturities comprising:

1. GHS 2.45 billion in 91-day maturities due on February 19^th
2. GHS 1.69 million in 182-day maturities due on February 19^th

>>GHS 5.63 billion in 56-day BOG Bill maturities comprising:

1. GHS 3.27 billion due on February 19^th
2. GHS 2.26 billion due on February 21^st

The Treasury Bill auction on Friday witnessed robust demand, surpassing the target by 16.58%. Responding to the demand, the Government accepted a total of GHS 5.671 billion, surpassing the auction target of GHS 4.865 billion by GHS 806.81 million.

Money Market Term(s) of the Week

Coupon Swap: A coupon swap (also called fixed-rate interest swap, par swap, or plain vanilla swap) is a contract between two parties (“A” and “B”) to exchange a fixed-rate interest payment for a floating-rate interest payment. It is calculated on the basis of a fixed principal for an agreed period of time.