BoG exceeds target for first T-Bills sale for 2022 by 5.6%

Over-subscription for treasury bill, a good signal for the economy – Report

Cost of the Treasury bills sale remain unchanged from last year

Rising debt and low revenue cause of high patronage

Sale of government’s treasury bills was marginally oversubscribed up to almost GH¢1.03billion representing a 2.6% increase, a Joy Business report has said.

Also, interest rates have remained stable from last year indicating a good forecast for government especially in the first week of the year where treasury bills have experienced oversubscription, since the sale of treasury bills fluctuated throughout last year.

The mixed sale of the treasury bills can be attributed to perceived risks in the Ghanaian economy, as Ghana’s debt keeps rising while revenue rates remained low.

It is however worthy of note that the cost of the Treasury bills did not change from that of the latter part of last year.

Government had kept interest rates low despite the occasional failure to meet their target for the sale of the T-bills during 2021.

However, this year’s oversubscription show that liquidity might be improving on the interbank market.

Results from the auctioning revealed that, government accepted all the bids tendered by the investors, securing GH¢865 million from the sale of the 91-day T-Bills with 12.52% interest rate, whilst the 6-months bill yielded GH¢172 million with an interest of 13.19%.

Overall, government’s target was GH¢982 million from the auctioning of the T-Bills but it exceeded it’s target to secure GH¢1037.64billion.