T-bills Now Constitute Banks Largest Investment Portfolio; Increase To 51% From 17.8% – BoG

Investment in treasury bills now constitutes banks largest investment portfolio the Bank of Ghana has revealed in its September 2023 Monetary Policy Report.

According to the report, the share of T-bills grew sharply to 51.0% in August 2023, from 17.8% in August 2022.

Instructively, the significant increase in the share of short-term investments can be attributable to limited trading on the medium-to-long term instruments because of the Domestic Debt Exchange Programme.

Consequently, the share of long-term securities in total investments, declined significantly to 48.8%, from 81.9% over the same reference period.

The share of equity investments remained negligible, moderating to 0.2% from 0.3% during the period under review.

Meanwhile, investments stood at ¢97.1 billion in August 2023, up by 19.9%, from the modest growth of 0.8% in August 2022, as banks continued to rebalance assets portfolio in favour of short-term investments, following the Domestic Debt Exchange Programme (DDEP) and revision of the Cash Reserve Ratio.

Similarly, banks’ short-term investments increased sharply by 242.6% in August 2023, after contracting by 38.2% in August 2022, while long-term investments (securities) recorded a contraction of 28.6% from a growth of 16.9% during the same reference period.

Consequently, the share of investments in total assets inched up marginally to 39.7% in August 2023, from 39.6% in August 2022.

 

Source: Myjoyonline
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