ACI Ghana weekly money market update – November 18, 2024

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

KEY TAKEAWAYS

The 91-day, 182-day and 364-day Treasury Bill yields were up by 14 bps, 11 bps and 9 bps, closing at 26.97%, 27.79% and 29.22%, respectively. The BOG 56-day BoG Bill and interbank rate were flat closing at 27.00%% and 27.02%, respectively.

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

>> GHS 4.97 billion in Treasury Bill maturities comprising:

1. GHS 3.61 billion in 91-day maturities due on November 18^th  
2. GHS 636.63 million in 182-day maturities due on November 18^th  
3. GHS 726.78 million in 364-day maturities due on November 18^th  

>> GHS 544.48 million in 56-day Bill maturities comprising:

1. GHS 544.48 million due on November 19^th

Demand for the Treasury Bills at the auction on Friday was undersubscribed by 16.82%. A total of GHS 5.18 billion in bids was accepted. The amount accepted was below the auction target of GHS 6.23 billion by GHS 1.05 billion.

Money Market Term(s) of the Week

Currency Swap: Currency swaps are agreements between two parties to trade one currency for another at a preset rate over a given period. Currencies were initially swapped to get around exchange controls, or legal limits on buying or selling currencies. The origin of swaps can be traced to the 1970s when investors in the UK used back-to-back loans to bypass the British government’s foreign exchange controls and capital restrictions. The back-to-back loans allowed counterparties to access the foreign exchange of another country without paying any foreign currency taxes.