Government failed to meet its Treasury bills target for the six week running, as liquidity tightened further on the interbank market.
According to the auction results by the Bank of Ghana, the costs of the short term securities however remained low.
The government’s target fell by about 20%, as it mobilized a little above GH¢913 million.
However, this could be partially due to its quest to keep cost of domestic borrowing lower.
Generally, money in circulation has declined albeit slightly, a testament of further tightening of liquidity on the interbank market.
Government actually accepted all the bids from the investors, mostly banks, as a little above GH¢789 million was raised from the sale of the 91-day Treasury bill.
This indicates that investors prefer the 3-months short instrument to the 6-months and one-year bills. The interest cost of the 91-day T-Bills also fell by 0.05 percentage points from the last week’s trading to 12.78%. But the yield of the 6-months bill shot up by 0.05% to 13.5%.
The past few weeks have seen liquidity squeezed on the market, depriving government the opportunity to raise adequate cash on the domestic market to finance its programmes.
The liquidity challenges on the market has been predicated by the 2021 Budget of Fiscal Consolidation. This is as a result of implementation of some new taxes, which has triggered increases in prices of some goods and services.
Securities | Bids Tendered (GH¢) | Bids Accepted (GH¢) | Interest rate |
91 Day Bill | 789.13 million | 789.13 million | 12.78% |
182 Day Bill | 124.12 million | 124.12 million | 13.57% |
Total | 913 million | 913 million | |
Target | 1.142 billion |
Latest Stories
-
Paris 2024: Opening ceremony showcases grandiose celebration of French culture and diversity
3 hours -
How decline of Indian vultures led to 500,000 human deaths
4 hours -
Paris 2024: Ghana rocks ‘fabulous fugu’ at olympics opening ceremony
4 hours -
Trust Hospital faces financial strain with rising debt levels – Auditor-General’s report
5 hours -
Electrochem lease: Allocate portions of land to Songor people – Resident demand
5 hours -
82 widows receive financial aid from Chayil Foundation
5 hours -
The silent struggles: Female journalists grapple with Ghana’s high cost of living
5 hours -
BoG yet to make any payment to Service Ghana Auto Group
5 hours -
‘Crushed Young’: The Multimedia Group, JL Properties surprise accident victim’s family with fully-furnished apartment
6 hours -
Asante Kotoko needs structure that would outlive any administration – Opoku Nti
6 hours -
JoyNews exposé on Customs officials demanding bribes airs on July 29
7 hours -
JoyNews Impact Maker Awardee ships first consignment of honey from Kwahu Afram Plains
8 hours -
Joint committee under fire over report on salt mining lease granted Electrochem
8 hours -
Life Lounge with Edem Knight-Tay: Don’t be beaten the third time
8 hours -
Pro-NPP group launched to help ‘Break the 8’
9 hours