The over-reliance on government short-term securities, also known as Treasury Bills, has reached its highest level in eight months.<\/p>\n Specifically, the 91-day bill yield climbed to 26.56 percent in the latest auction in November, indicating increased pressure on Ghana’s short-term borrowing costs.<\/p>\n Since March 18 of this year, the current interest rate on the yields for the 91-day bill has been pegged at 26.49 percent, while the yields for the 182-day and 364-day bills stand at 27.58 percent and 29.03 percent respectively.<\/p>\n Over the past decade, Ghana’s short-term securities have experienced significant volatility, reflecting the current economic crisis and government policy responses.<\/p>\n During the country’s worst economic downturn in 2022, interest rates for Treasury Bills saw a dramatic surge, reaching levels around 35 percent, along with high inflation and a rapid decline in the cedi’s value against major trading currencies.<\/p>\n A market analyst speaking with Graphic Business mentioned that the current rise in T-Bills yields indicate that investors remain cautious about the Ghanaian economy.<\/p>\n He noted that the elevated interest rates could further lead to a crowding effect that might negatively impact credit for private sector borrowing and investment.<\/p>\n “The upward trend in T-bill rates could influence other benchmark interest rates in the economy, potentially affecting commercial lending rates and the cost of credit for businesses and individuals.<\/p>\n “This could have broader implications for economic growth and private sector development in Ghana,” the market analyst is quoted as saying by Graphic Business.<\/p>\n MA<\/p>\n Watch the latest edition of BizTech below:<\/b><\/p>\n![\"The](\"https:\/\/cdn.ghanaweb.com\/imagelib\/pics\/713\/71376846.295.jpg\" "\\"The")
The 91-day bill yield climbed to 26.56 percent in the latest auction in November this year<\/span><\/span><\/p>\n<\/div>\n