ACI Ghana weekly money market update – May 27, 2024

Below is Ghana’s money market update for the week beginning May 27, 2024.

KEY TAKEAWAYS

Yields on the 91-Day, 182-Day and 1-Year T-Bill rates remained at 25.10%, 26.95%, and 27.95% respectively. BOG 56-day bill and interbank rate also remained at 29.00% and 28.74% respectively.

Expected maturities for the week of May 27, 2024, include:

>> GHS 4.06 billion in Treasury Bill maturities comprising:

1. GHS 3.41 billion in 91-day maturities due on May 27^th
2. GHS 375.89 million in 182-day maturities due on May 27^th
3. GHS 274.45  million in 364-day maturities due on May 6^th

>> GHS 407 3illion in 56-day Bill maturities comprising:

1. GHS 407.93 billion due on May 29^th

The Treasury Bill auction demand on Friday was undersubscribed by 15.41%. The Government accepted GHS 4.075 billion of GHS 4.115 billion in bids tendered, which was below the auction target of GHS 4.865 billion

Money Market Term(s) of the Week

Commercial Paper (CP) issuance modes: CP may be issued as either a Discreet issuance or a Shelf Issuance Programme.

Discrete issuance:  This refers to a single, standalone CP issuance. It is ideal for issuers who do not frequently issue CP. Each new issuance requires separate documentation to be registered or filed with the SEC and the GSE.

Shelf issuance programme:   This method allows for multiple CP issuances under a single set of documentation, without the need to re-register or re-file for each issuance. It is more suitable for companies that expect to access the market frequently.