Government to borrow 17.4 billion Ghana cedis in June

The government is scheduled to borrow an amount of GH¢17.4 billion in the July of 2024. This 17.4 billion Ghana cedis will lead to an increment of 18.8%, in comparison to the amount borrowed in June.

To refinance maturing bills, an average weekly bid of GH¢3.5 billion will be necessary.

There had been an average weekly bid of 4.1 billion Ghana cedis, in the past 2-months post Cash Reserve requirement.

Hence, this suggests that the treasury ought to raise money worth 3.2 billion Ghana cedis, in the month of July.

Last week, investors showed a preference for shorter-term investments on the yield curve. The 91-day bill attracted GH¢2.5 billion, an increase from the previous week’s 2.3 billion Ghana cedis. The closing rate witnessed a small decline of 24.79%.

The 182-day bill experienced a similar trend, decreasing its yield by 5 basis points to reach 26.75%, and the 364-day bill maintained its position at 27.79%.

All bids covering estimated maturities valued at 2.76 billion Ghana cedis were accepted by the treasury.

There’s an expected continuation of the gradual decrease of short-term yields

Financial experts predict that the downward trend in short-term interest rates will persist, as investors foresee a continued decrease in the inflation rate. On Friday, July 12, 2024, the government plans to raise 4.7 billion Ghana cedis by issuing 91, 182, and 364-day securities, with the purpose of repaying maturing bills totaling 4.4 billion Ghana cedis.

17.22 billion Ghana cedis was borrowed in June, and prior to that, was an amount of
15.71 billion, a significant increment monthly. The borrowed amount in June was 9.55% more than that in May.