ACI Ghana weekly money market update – June 10, 2024

Below is Ghana’s money market update for the week beginning June 10, 2024.

KEY TAKEAWAYS

Yields were flat on 91-Day at 25.04%, while 182-Day, and 1-Year T-Bills rose by 2 bps to close at 26.94%, and 27.93% respectively. BOG 56-day bill remained flat at 29.00% and the interbank rate rose 2 bps to close at 28.76%.

Expected maturities for the week of June 10, 2024, include:

>> GHS 4.14 billion in Treasury Bill maturities comprising:

1. GHS 2.72 billion in 91-day maturities due on June 10^th
2. GHS 1.11 billion in 182-day maturities due on June 10^th
3. GHS 308.36 million in 364-day maturities due on June 10^th

>> GHS 4.28 billion in 56-day Bill maturities comprising:

1. GHS 1.88 billion due on June 10^th
2. GHS 2.39 billion due on June 12^th

The Treasury Bill auction demand on Friday was oversubscribed by 19.47%. The Government accepted all bids totaling GHS 5.257 billion. This exceeded the auction target of GHS 4.40 billion by GHS 856.69 million.

Money Market Term(s) of the Week

Risk-Free Rates (RFRs) – Secured Overnight Financing Rate (SOFR): SOFR is a benchmark interest rate for dollar-denominated derivatives and loans that replaced the London Interbank Offered Rate (LIBOR). SOFR took the place of LIBOR in June 2023, offering fewer opportunities for market manipulation and current rates rather than forward-looking rates and terms. The SOFR is an influential interest rate banks use to price U.S. dollar- denominated derivatives and loans. The daily SOFR is based on transactions in the Treasury repurchase market, where investors offer banks overnight loans backed by their bond assets.