The government of Ghana has secured GH¢2.57 billion from the sale of treasury bills in the auction on May 5, 2023, despite rising interest rates.
The auction saw an oversubscription of GH¢733.79 million. According to the auction results from the Central Bank, the government secured GH¢1.63 billion from the 91-day bill, GH¢557.90 million from the 182-day bill, and GH¢380.75 million from the 364-day bill.
Interest rates have increased to an average of between 20.25% to 27.36%. Interest rates for the 91-day bill increased from 19.74% to 20.25%, for the 182-day bill increased from 22.47% to 22.82%, and for the 364-day bill increased from 26.9% to 27.36%.
The government’s ability to raise such a large amount despite rising interest rates is a testament to its financial management and investor confidence. The oversubscription of GH¢733.79 million shows that investors are still willing to invest in Ghana’s economy despite rising interest rates.
This is good news for Ghana’s economy as it shows that investors have confidence in its long-term prospects.
In conclusion, despite rising interest rates, the government of Ghana has been able to secure a large amount of funds through treasury bills auctions