ACI Ghana weekly money market update – February 26, 2024

Below is Ghana’s money market update for the week beginning February 26, 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 61bps, 65bps and 60bps to close at 27.28%, 29.75% and 30.30% respectively. BOG 56-day bill rate was flat at 29.00%. Interbank interest rates fell by 20bps to 28.85%.

Expected maturities for the week of February 26th, 2024, include:

>> GHS 5.44 billion in Treasury Bill maturities comprising:

1. GHS 3.28 billion in 91-day maturities due on February 26^th
2. GHS 701 million in 182-day maturities due on February 26^th

3. GHS 1.46 billion in 364-day maturities due on February 26^th

>>GHS 3.66 billion in 56-day BOG Bill maturities comprising:

1. GHS 3.66 billion due on February 28^th

The Treasury Bill auction on Friday witnessed weakened demand even though the target was exceeded by 11.20%. The Government accepted a total of GHS 6.970 billion, surpassing the auction target of GHS 6.268 billion by GHS 702.08 million.

Money Market Term(s) of the Week

Fixed Rate Swap Quotation: Fixed-rate interest swaps are usually quoted as a fixed interest rate for the term on the basis of the reference rate (e.g., SOFR, LIBOR, GHIBOR) without spread. The quotation on the fixed-rate side can be done by a quotation of the interest rate or by a quotation of the spread to the current yield of (usually) government bonds.