ACI Ghana weekly money market update – July 22, 2024

Below is Ghana’s money market update for the week beginning July 22, 2024.

KEY TAKEAWAYS

The yield for 91-Day was flat at 24.79%. 182-Day fell by 3 bps and 1-Year T-Bills rose by 2 bps, closing at 26.71%, and 27.81% respectively. The BOG 56-day bill was flat at 29.00%. The interbank rate remained flat at 28.83%.

Expected maturities for the week of July 22, 2024, include:

>> GHS 4.24 billion in Treasury Bill maturities comprising:

1. GHS 2.36 billion in 91-day maturities due on July 22^nd
2. GHS 1.32 billion in 182-day maturities due on July 22^nd
3. GHS 557.07 million in 364-day maturities due on July 22^nd

>> GHS 1.02 billion in 56-day Bill maturities comprising:

1. GHS 291.85 million due on July 22^nd
2. GHS 723.29 million due on July 24^th

The Treasury Bill auction demand on Friday was undersubscribed for a second consecutive week by 27.23%. The Government accepted bids totalling GHS 3.864 billion. The amount accepted was below the auction target of GHS 5.31 billion by GHS 1.45 billion.

Money Market Term(s) of the Week

Term Structure of Interest Rates: The term structure of interest rates, commonly known as the yield curve, depicts the interest rates of similar quality bonds at different maturities. When graphed, the term structure of interest rates is known as a yield curve, and it plays a crucial role in identifying the current state of an economy. The term structure of interest rates reflects the expectations of market participants about future changes in interest rates and their assessment of monetary policy conditions.