Liquidity appears to have improved significantly as government recorded ¢1.150 billion from the sale of the weekly Treasury bills transaction, an oversubscription of 23.48%.
According to the auctioning results by the Bank of Ghana, government accepted ¢1.088 billion from the bids tendered in.
The target for the sale of the short-term securities was ¢932 million.
However, a chunk of the amount came from the 91-day T-bills whereby ¢940.17 million was secured. ¢210.72 was mobilized from the 182-day T-bills
Meanwhile, interest rates remained relatively the same for the third week running.
This signifies investor confidence, following the intervention by the International Monetary Fund governments to help revive the economy.
It is also coming after June 2022 inflation almost hit 30%.
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However, the rate of inflation between May 2022 and June 2022 slowed down, a reason that could have kept interest rates on the money market virtually the same. They are, however, lower than the 29.8% inflation recorded in June 2022.
According to the auctioning results, the interest rate on the 91-day Treasury bills stood at 25.95%, compared with 25.89% recorded a week ago.
That of the 182-day T-bills was 27.46%, a little higher than the 26.54%, registered the previous week.
However, all eyes will be on the Monetary Policy of the Bank of Ghana when it begins its quarterly meeting tomorrow, June 20th, 2022.
Source: Business Analyst