ACI Ghana weekly money market update – October 21, 2024

Below is Ghana’s money market update for the week beginning October 21, 2024.

KEY TAKEAWAYS

The 91-day, 182-day and 364-day Treasury Bill yields were up by 33bps, 13 bps and 16bps, closing at 25.94%, 27.03% and 28.74%, respectively. The BOG 56-day BoG Bill and interbank rate fell by 122bps and 6bps and closed at 26.78% and 27.44%, respectively.

Expected maturities for the week of October 21, 2024, include:

>> GHS 3.79 billion in Treasury Bill maturities comprising:

1. GHS 2.90 billion in 91-day maturities due on October 21^st
2. GHS 818.32 million in 182-day maturities due on October 21^st
3. GHS 68.99 million in 364-day maturities due on October 14^th

>> GHS 3.63 billion in 56-day Bill maturities comprising:

1. GHS 1.51 billion due on October 21^st
2. GHS 2.11 billion due on October 23^rd

Demand for the Treasury Bills at the auction on Friday was oversubscribed slightly by 3.97%. A total of GHS 4.20 billion in bids was accepted. The amount accepted was above the auction target of GHS 4.04 billion by GHS 160.32 million.

Money Market Term(s) of the Week

Cash Waterfall Mechanism: Cash Waterfall mechanism is a mechanism that helps in determining the allocation of the monthly interest and the principal cash flows among the parties involved in a transaction. It suggests that both the interest and principal payments are all paid in proper sequence employing the cash flows that are generated from the collaterals. The highest-ranking tranches (interest and principal payments), also known as Money Market Update 21^st senior tranche, are paid first, followed with the lower ones (junior tranche) with equity tranche being the last paid.