ACI Ghana weekly money market update – March 18, 2024

Below is Ghana’s money market update for the week beginning March 18, 2024.

KEY TAKEAWAYS

Last week short-term interest rates continued falling. The yield on the 91-Day, 182-Day and 1-Year T-Bill rates all fell by 25bps to close at 26.50%, 29.00%,  and 29.60% respectively. BOG 56-day bill rate and interbank interest rate remained unchanged at 29.00% and 28.47% respectively.

Expected maturities for the week of March 18, 2024, include:

>> GHS 3.64 billion in Treasury Bill maturities comprising:

1. GHS 3.15 billion in 91-day maturities due on March 18^th
2. GHS 496.15 million in 182-day maturities due on March 18^th

>> GHS 2.05 billion in 56-day Bill maturities comprising:

1. GHS 882.77 million due on March 18^th

2. GHS 1.17 billion due on March 20^th

The Treasury Bill auction on Friday witnessed weakened demand even though the target was exceeded by 38.31%. The Government accepted a total of GHS 5.37 billion, surpassing the auction target of GHS 3.89 billion by GHS 1.47 billion.

Money Market Term(s) of the Week

Netting: Usually, in a swap, interest payments between the counterparties flow on the same dates. Therefore, only the difference between the interest payments, i.e. the net amount, is exchanged. This is referred to as netting.