ACI Ghana weekly money market update – June 3, 2024

Below is Ghana’s money market update for the week beginning June 3, 2024.

KEY TAKEAWAYS

Yields on 91-Day, 182-Day, and 1-Year T-Bills fell by 6 bps, 3 bps, and 4 bps respectively, closing at 25.04%, 26.92%, and 27.91%. BOG 56-day bill and the interbank rate remained flat at 29.00% and 28.74% respectively.

Expected maturities for the week of June 3, 2024, include:

>> GHS 2.55 billion in Treasury Bill maturities comprising:

1. GHS 1.83 billion in 91-day maturities due on June 3^rd  
2. GHS 722.99 million in 182-day maturities due on June 3^rd  
3. No 364-day maturities due on June 3^rd

>> GHS 1.76 billion in 56-day Bill maturities comprising:

1. GHS 728.98 million due on June 3^rd
2. GHS 1.03 billion due on June 3^rd

The Treasury Bill auction demand on Friday was oversubscribed by 29.71%. The Government accepted all bids totaling GHS 3.520 billion. This exceeded the auction target of GHS 2.718 billion by GHS 802 million.

Money Market Term(s) of the Week

Risk-Free Rates (RFRs): A rate of interest used as a benchmark in financial transactions that is designed to exclude counterparty credit risk and account solely for economic factors. RFRs are considered more robust and less susceptible to manipulation than interbank offered rates (IBORs), such as LIBOR. Examples of RFRs include the Secured Overnight Financing Rate (SOFR), administered by the Federal Reserve Bank of New York, the Sterling Overnight Index Average (SONIA), administered by the Bank of England, and the Tokyo Overnight Average Rate (TONA), administered by the Bank of Japan.