Sentiments in the Ghanaian money markets has begun to stabilise, as demonstrated by the level out of the- exchange rate. After declining 15 per cent in the space of two months and touching GH¢1.16/$1, the currency has been broadly stable for the past six weeks. Parliamentary approval of the Ghana Telecom sale to Vodafone was the first major piece of good news, helped along by a slight decline in consumer inflation. More recently, traders have been encouraged by the substantial decline in crude oil prices over the last several weeks. Nevertheless interest rates remain high, as a signal that a significant risk premium is required for investors to retain their interest. For example, at the latest weekly auctions, the 91 days T-bill yield averaged 24:71 percent and the 182-day 26.28 per cent. Longer tenures sloped off materially- rates of 20 per cent and 21 per cent, respectively, prevailed in the one and two-year auctions - but total sales for these tenures were an immaterial GH¢ 3million. Separately, foreign investors remain nervous about sovereign risk as the presidential election campaign moves into full swing. At a price of 98, the outstanding eurobond is at the lowest level since issuance a year ago and the spread has reach 575 bpts. Analysts believe this to be an attractive entry level for long term dollar-based investors, although there will be some mark-to-market risk as the December 7, elections approaches.-GB