ACI Ghana weekly money market update – March 4, 2024

Below is Ghana’s money market update for the week beginning March 4, 2024.

KEY TAKEAWAYS

During the past week, short-term interest rates experienced a continued decrease. The yields on the 91-day, 182-day, and 1-year T-Bill rates all declined, dropping by 28 bps, 25 bps, and 20 bps respectively, resulting in weighted average rates of 27.00%, 29.50%, and 30.10%. The BOG 56-day bill rate remained unchanged at 29.00%. Furthermore, interbank interest rates also saw a decrease of 38 bps from 28.85% to 28.47%.

Expected maturities for the week of March 4, 2024, include:

>> GHS 3.87 billion in Treasury Bill maturities comprising:

1. GHS 1.34 billion in 91-day maturities due on March 4^th
2. GHS 650 million in 182-day maturities due on March 4^th

3. GHS 1.88 billion in 364-day maturities due on March 4^th

>>GHS 3.22 billion in 56-day BOG Bill maturities comprising:

1. GHS 3.22 billion due on March 4^th

The Treasury Bill auction for the week was oversubscribed by circa 20.00% with the government accepting a total of GHS 4.94 billion against an auction target of GHS 4.13 billion.

Money Market Term(s) of the Week

Value At Risk (VaR): Value at risk is a measure of the risk of loss of investment/Capital. It estimates how much a set of investments might lose, given normal market conditions, in a set time period such as a day.