Interest rates Archives - Page 2 of 3

28 Jul

Ghana To Reach Debt Deal With External Creditors In Quarter 2, 2024 – Fitch Solutions

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Fitch Solutions believes that Ghana will reach a debt deal with its external creditors in the second half of 2024. According to the UK-based firm, this should provide tailwinds to the exchange rate and further limit imported price pressures. “Indeed, we believe that Ghana will reach a debt deal with its external creditors in H224 [half-year 2024], which should provide tailwinds to the exchange rate and further limit imported price pressures”. It added that real Gross Domestic Product growth will remain well below trend on the back of fiscal consolidation efforts under the IMF programme. However, the Central Bank will…

12 Jul

Ghana Overtake Egypt With Highest Interest Rates Among 15 Top African Countries

wontumionlineBusinessBoG, Egypt, Ghana, Interest rates

Ghana overtook Egypt with the highest interest rates among 15 top African countries. According to the Weekly Fixed Income Update compiled by some investment firms, the rates of about 24.39% and 26.03% for the 91-day and 182-day treasury bills were the highest among these top African economies. Despite the rates falling significantly in March 2023 due to the Domestic Debt Exchange Programme, they have gone up consistently to almost 30% (364-day bill) since then, and are also classified among the highest globally. The 91-day bill and 182-day bill have fallen by 10.97% and 9.95% since March 2023. Again, average lending…

12 Jun

T-bills Auction: Interest Rates Rise To 27.8%; Government Records 6.4% Oversubscription Of Target

wontumionlineBusinessBoG, Interest rates, T-Bills

Government recorded about 6.4% oversubscription of its treasury bills target of ¢2.63 billion but an increasing cost. According to figures from the Bank of Ghana, interest rates surged for the eighth-week running, raising concerns about the government’s debt management strategy, aimed at cutting Ghana’s debt. The government has been borrowing heavily on the money market since the beginning of 2023 but at a higher cost. This is because it is the only source of borrowing. The rising interest rates are expected to keep high the domestic interest payments of the government. The figures from the Bank of Ghana indicate that…

12 May

Interest Rates-Reset Key To Private Sector Growth

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Amid the current economic crisis brought about by the COVID-19 pandemic and Domestic Debt Exchange Programme, one key solution for supporting growth of the private sector is resetting interest rates in the economy, Managing Director-Stanbic Investment Management Services, Kwabena Boamah, has advocated. Speaking during a panel discussion at The Money Summit 2023 organised by B&FT, Mr. Boamah emphasised that investing in long-term investments is the way to beat inflation rather than relying on Treasury bills and fixed deposits. “In March, we saw Treasury bill rates drop and people were asking questions: why should the rates drop when inflation is about…

08 May

T-bills Auction: Government Exceeds Target By 40%; Borrowing Costs Surge

wontumionlineBusiness182-day, 364-day, 91-day, Interest rates, T-Bills

Government borrowing on the money market continued to shoot up significantly, as it accepted 99.9% of the bids tendered by the investors for the just-ended Treasury bills auction. The sale of the short-term securities was also oversubscribed by about 40% of the targeted amount of ¢1.834 billion, but once again the cost of borrowing has become a concern to many analysts and market watchers. According to the auction by the Bank of Ghana, the government accepted a significant ¢2.56 billion from the bids submitted by the investors, largely the banks. Yet again, majority of the bids came from the 91-day…

06 Apr

It’s Premature To Lower Interest Rates – World Bank

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AFRICAN central banks should continue to raise interest rates to help absorb price pressures and protect the incomes of their citizens from further deterioration, the World Bank has said. Monetary authorities in the region, including the country’s Bank of Ghana (BoG), must not fall for the temptation to ease rates in response to the recent falling inflation in some countries, the bank said in the latest edition of its Africa Pulse launched today, Wednesday. It said lowering rates would be premature but advised that: “Policies to fight against inflation should be complemented by income support measures such cash or food…

03 Apr

Government Gets GH¢1.6 Billion From T-Bills, Interest Rates Increase Slightly

wontumionlineBusinessInterest rates, T-Bills

The sale of treasury bills saw an oversubscription of about GH¢300 million from an auction held on March 31, 2023. The government secured GH¢1.59 billion from the auction after it set a target of GH¢1.34 billion. Last week, the government saw an under-subscription of about GH¢764 million after it set the target at about GH¢3.21 billion. Meanwhile, interest rates have increased slightly from an average of 18.87 percent to 19. 38%. According to the auction results from the Central Bank, the government secured GH¢1.24 billion from the 91-day bill and GH¢355.13 million from the 182-day bill. Interest rates however increased…

20 Mar

Interest Rates On Falling Spree; Government T-bills Oversubscribed By 40%

wontumionlineBusiness182-day, 91-day, Interest rates, T-Bills

Interest rates fell once again as government Treasury bills was oversubscribed by about 40.3% to the tune of ¢3.89 billion. According to the auctioning results by the Bank of Ghana, the bids for the 91-day bill was far more than the targeted amount. Following the successful completion of the Domestic Debt Exchange Programme, interest rates on the money market have witnessed a significant fall. From a high of 35%, the rates have eased to about 20% on the average. The yield on the 91-day bill fell by 0.52% to 18.52%. At the same time, the 182-day rate also declined to…

09 Mar

Government Saves ¢220m From Significant Fall In Interest On T-Bills

wontumionlineBusinessGovernment, Interest rates, T-Bills

The Ghana Government saved ¢220 million from the significant fall in Treasury bills yields. According to the Executive Director of Dalex Finance, Joe Jackson, the interest rates on the Treasury bills will even drop further in the coming weeks. The government on Tuesday, March 7, 2023, beat the cost of its Treasury bills down significantly, securing ¢6.15 billion from the auction, about 121.6% oversubscription. According to results from the Bank of Ghana, the government reduced the pricing of the short term instruments from 35% to a yield of 24.16% for the 91-day T-bills. However, that of the 182-day and 364-day…

16 Jan

Interest Rates Remain Unchanged As Government T-Bills Oversubscribed By 52%

wontumionlineBusiness182-day, 91-day, Inflation, Interest rates, T-Bills

Interest rates remained stable despite the government achieving more than 52% oversubscription of Treasury bills sale. According to the latest auction results, government obtained ¢1.72 billion from the short-term securities, but accepted ¢1.71 billion of the bids tendered. The target for the auction was ¢1.125 billion. More than 85% of the bids tendered were from the 91-day T-bills as demand surged. Government accepted all the bids of about ¢1.47 billion. Again, the government accepted all the bids of ¢198.49 million tendered by the investors, largely banks. The yield on the 91-day and the 182-day T-bills dipped slightly though relatively same…