ACI Ghana weekly money market update – October 14, 2024

Below is Ghana’s money market update for the week beginning October 14, 2024.

KEY TAKEAWAYS

The 91-day, 182-day and 364-day Treasury Bill yields were up by 16 bps, 10 bps and 6 bps, closing at 25.62%, 26.90% and 28.58%, respectively. The BOG 56-day BoG Bill was flat, whilst interbank rates fell by 44 bps and closed at 28.00% and 27.50%, respectively.

Expected maturities for the week of October 14, 2024, include:

>> GHS 4.22 billion in Treasury Bill maturities comprising:

1. GHS 3.54 billion in 91-day maturities due on October 14^th
2. GHS 505.08 million in 182-day maturities due on October 14^th
3. GHS 183.66 million in 364-day maturities due on October 14^th

>> GHS 4.24 billion in 56-day Bill maturities comprising:

1. GHS 2.03 billion due on October 14^th
2. GHS 2.21 billion due on October 16^th

Demand for the Treasury Bills remained low, with the auction on Friday being undersubscribed by 38.56%. A total of GHS 3.674 billion in bids was accepted. The amount accepted was below the auction target of GHS 5.98 billion by GHS 2.31 billion.

Money Market Term(s) of the Week

ISDA Master Agreement – Events – Events of Default – Types:

2. Breach or Repudiation of Agreement (Cont.’ d): This provision allows a party to terminate the agreement if the other party shows a clear intention not to fulfill its contractual obligations, even if no actual failure to perform occurs.
3. Credit Support Default: If a party’s obligations under the ISDA Master Agreement are backed by external credit support or a guarantee, the failure of that support—such as loss of a security interest or termination of a third- party guarantee—can allow the other party to terminate the agreement.