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Jamilatu Mashud

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Mar – 22 – 2025 , 15:04

2 minutes read

Interest rates for treasury bills continue to drop

Professor Peter Quartey, Director, of the Institute of Statistical, Social, and Economic Research (ISSER), has raised serious concerns over the declining Treasury Bills (T-Bills) rates.

He said the decline had a potential impact on foreign exchange stability and the depreciation of the Ghanaian cedi.

He expressed these concerns in an exclusive interview with the Ghana News Agency.

Professor Quartey cautioned that the current trend is unsustainable and could exacerbate the country’s economic challenges if not addressed promptly.

The warning comes when the Central Bank prepares to announce the new interest rate at the next Monetary Policy Committee Meeting.

The reduction in T-bill rates from 16.93 to 15.88 per cent has raised concerns among investors and market watchers over its impact on the exchange rate.

Professor Quartey highlighted that the sharp decline in T-Bill rates had led to a shift in investor behaviour, with many opting to divest from local bonds and treasury instruments in favour of holding foreign currencies, particularly the US dollar.

“If we are not careful, this artificial decline in T-Bill rates will put pressure on our foreign exchange reserves. People are already buying dollars and stopping investments in local instruments. This will only worsen the cedi’s depreciation,” he stated.

The ISSER Director pointed out that the current fixed deposit rate of 10 per cent, in comparison to the soaring inflation rate of 23 per cent, made it unattractive for investors to keep their funds in local currency.

“Why would anyone invest in a 10 per cent fixed deposit when inflation is at 23 per cent? It doesn’t make sense. People are naturally seeking safer havens for their money, and this is causing a currency substitution problem,” he said.

Professor Quartey also expressed concern over the broader implications of the trend for monetary policy and economic stability.

He noted that the decline in T-Bill rates could create significant challenges for the Bank of Ghana and the government.

“If investors continue to sell off local bonds and treasury bills, it will become increasingly difficult for the government to raise the needed funds to support critical sectors of the economy,” he said.

The economist further emphasised the need for a diversified approach to economic management, including a focus on gold and other export commodities to mitigate political and economic shocks.

“We need to revise our export retention schemes and ensure that we are not overly reliant on a single source of revenue. Diversification is key to sustaining growth and stability,” he said.

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Accra, March 22, GNA – Mr Haruna Iddrisu, the Minister of Education, has indicated government’s commitment to giving the management and councils of public universities the freehand to operate. 

He said government placed high premium on academic freedom and regarded external interferences in universities as a threat to that freedom. 

“I want to assure you that His Excellency John Dramani Mahama, supported by his Vice President, Prof Jane Naana Opoku-Agyemang, a former vice-chancellor herself, and a highly experienced academic, is firmly committed to empowering university councils and management to perform their statutory duties without interference.” 

The Minister gave the assurance in a speech read on his behalf at the Second Session of the Third Congregation of the University of Media, Arts and Communication (UniMAC), in Accra, on Friday.  

The event saw the University confer a Master of Philosophies (Mphil) and Master of Arts (MA) degree on 205 students; comprising 116 females and 89 males. 

Mr Iddrisu expressed government’s commitment to empowering academic boards and management of the various public universities to enable them to perform their duties legitimately. 

He, however, warned that the Ministry would not hesitate to hold them accountable for non-performance or illegitimate actions. 

The Minister commended the Management of UniMAC for its commitment to upholding excellence and for incorporating research as a key area of study. 

The  government attached high importance to research functions because they were critical for the country’s development, he said, and promised to operationalise the Ghana National Research Fund Act (Act 1056). 

Passed by Parliament in 2020, the Act is designed to provide sustainable financial support for research activities in universities and research institutions. 

The Minister said plans were far advanced to have it operationalised to support research activities in the various universities. 

“Management structures are being put in place with seed money from GETFund to ensure that the national research fund becomes operational this year.” 

He assured the Management of UniMAC of government’s continued support to enable it to train professionals capable of competing both locally and internationally with their peers. 

Prof. Eric Opoku Mensah, the Vice-Chancellor, UniMAC, said as an institution, it remained committed to equipping graduates with the skills necessary for the 21st century economy. 

“Moreover, our alignment with the Sustainable Development Goals (SDGs) reinforces our commitment to quality education (SDG 4), gender equality (SDG 5), industry innovation (SDG 9), and reduced inequalities (SDG 10),” he said. 

“Through research, policy advocacy, and academic excellence, we remain steadfast in shaping a future where education is the bridge to prosperity.” 

Prof Mensah stressed the need for infrastructural expansion, improved student welfare, and enhanced faculty development, appealing to the government to provide support to the school to enable it to achieve that objective. 

He urged the graduands to be resilient, adapt to the ever-changing job market and continue to learn to make the impact they desired. 

In an interview with the Ghana News Agency, a Development Communication postgraduate student, Mr James Amoh Junior, described the academic journey as both “transformative and enlightening.” 

He said the course provided a deeper understanding of the intersection between communication and sustainable development, equipping students with the tools to drive social change through strategic messaging and storytelling.  

“This experience has reshaped the way I approach journalism and communication. It has deepened my commitment to using my platform not just to inform, but to influence policies and empower communities,” he said. 

GNA 

ABD 

Samuel Okudzeto Ablakwa, Minister of Foreign Affairs, has affirmed Ghana’s commitment to leveraging its full membership in the International Organization of La Francophonie (OIF) to strengthen ties between Anglophone and Francophone African communities.

Speaking at La Francophonie’s 55th anniversary flag-raising ceremony in Accra, he emphasized Ghana’s dedication to the shared values of democracy, human rights, cultural diversity, and sustainable development.

“Ghana, under the leadership of His Excellency President John Dramani Mahama, intends to use her new status with the OIF to promote the values and principles that bind us together,” Mr. Ablakwa stated. “We reaffirm our commitment to building bridges between Ghana and Anglophone and Francophone communities.”

He highlighted Ghana’s efforts toward regional peace and stability and reiterated the nation’s unwavering commitment to fostering democratic governance, human rights, and sustainable development.

Given the prevailing regional and global political climate, he stressed the urgency of promoting these ideals.

“Indeed, in the context of our current regional and global landscape, the promotion of these ideals has become even more imperative,” he remarked.

Mr. Ablakwa also acknowledged the contributions that facilitated Ghana’s attainment of full membership status in the OIF. He extended appreciation to Ambassador Thai Hong Mai, the West African Representative of the OIF, along with her team and member states, for their support in this achievement. Ghana officially attained full membership in October 2024.

Echoing this sentiment, Mr. Maher Kheir, Ambassador of Lebanon and President of the Group of Francophonie Ambassadors, described Ghana’s accomplishment as a testament to its commitment to bilingualism, cooperation, and active engagement with the Francophone world.

“More than ever, Ghana is poised to play a key role in ECOWAS and regional diplomacy, bridging the gap between English-speaking and French-speaking African countries,” he noted.

Mohammed-Mubarak Muntaka, Minister of the Interior

Mohammed-Mubarak Muntaka, Minister of the Interior, is set to appear before Parliament to provide details on the alleged search warrant executed at the residence of Dr. Ernest Addison, a former Governor of the Bank of Ghana.

This follows an alleged raid on Dr. Addison’s Roman Ridge home on Wednesday, March 19 by heavily armed National Security operatives, which has raised concerns about due process and the motives behind the operation.

Members of Parliament (MPs), particularly from the New Patriotic Party Minority Caucus, have called for full disclosure on the legality and justification for the raid, insisting that Parliament must hold the government accountable for the actions of security agencies.

The Interior minister is expected to clarify the basis for the search warrant and the allegations leading to the operation.

However, Majority Leader, Mahama Ayariga has defended the operation, saying it was not a raid but rather a properly executed search warrant carried out in accordance with the law. “Mr. Speaker, law enforcement officers lawfully went there to conduct a search, and it is perfectly lawful. And so, using the word raid is clearly wrong,” he said.

Meanwhile, a new date for the Minister’s appearance is yet to be announced, after Ayariga revealed that the Interior minister will not be available on Tuesday, March 25.

The Interior Minister’s appearance before Parliament is expected to provide clarity on the circumstances surrounding the alleged raid.

According to the reports armed men, approximately 20 in number, allegedly led by Mr. Richard Jakpa, Director of Special Operations at the National Security Secretariat, raided the private residence of the former Bank of Ghana Governor, Dr. Addison, on Wednesday, March 19.

Eyewitness accounts indicated that the heavily armed officers allegedly disabled the Closed-Circuit Television (CCTV) system before searching the house.

Reports indicated that the heavily armed men, some allegedly wearing balaclavas and wielding AK-47 semi-automatic rifles, demanded that Dr. Addison led them to the “vaults” in his house.

However, Dr. Addison allegedly informed them that he had no vaults or cache of cash at home. Despite this, the security personnel allegedly ransacked the house, disabling the CCTV system beforehand.

According to eyewitnesses, no vaults were found, and no large amounts of cash were discovered.

The security personnel eventually left allegedly with the CCTV monitor and control unit.

Dr. Addison, his wife, and their family are reportedly traumatised following the raid.

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Minister of Roads and Highways, Kwame Agbodza

The Minister of Roads and Highways, Kwame Agbodza, has reaffirmed the government’s commitment to reintroducing a technologically advanced tolling system to generate revenue for road infrastructure development.

To this end, the minister has announced that Ghana will soon launch its own electronic tolling system, with the ambitious goal of establishing “the best road tolling system in Africa.”

“We are not settling for anything less than excellence,” he stated, emphasising the importance of innovation and expressing the government’s determination to dispel any doubts regarding the reintroduction of tolls.

Agbodza made these remarks in Accra on Tuesday during a courtesy call by the Turkish Ambassador to Ghana, H.E. Hüseyin Güngör.

He noted that the ministry is currently in the process of obtaining approval from the Public Procurement Authority (PPA) to select a transaction advisor.

“Transparency is a priority, and we welcome all capable organisations to participate in the selection process. We want the best technical and financial proposal that will enable us to operate a highly sustainable tolling system,” he stated.

The minister assured the public that his ministry would keep them informed about the progress of the tolling system’s development and the selection process for the transaction advisor.

“In a few days, the advertisement for the selection of the transaction advisor should be out. Together, we will pave the way for a brighter future in road infrastructure,” he added.

The discussions also explored opportunities for Turkish investors to contribute to the country’s road infrastructure development through the government’s flagship programme, “The Big Push.”

Mr. Agbodza further highlighted the potential for technical cooperation between the two nations and invited Turkish engineers to share their expertise in tolling systems.

“We are ready to collaborate and learn from successful models, particularly those in Turkey that utilise technology instead of traditional toll booths. Our partnership could lay a strong foundation for Ghana’s new tolling system, ensuring it is both efficient and sustainable,” he concluded.

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