Ghana’s government plans to borrow GH¢2.63 billion this week to pay off its maturing bills of about GH¢2.50 billion.
The borrowing will be done through treasury bills with maturities ranging from 91 days to 364 days. Experts and traders predict that money market rates will go up slightly, as the higher yield on Bank of Ghana bill will reduce some liquidity in the market.
The government raised GH¢2.41 billion from money market auction last week, with strong demand from investors, exceeding the target amount by 16%.
The yields on 91-day and 182-day bills rose to 21.16% (+36 basis points) and 23.94% (+32 basis points), respectively, as the government accepted higher yields to meet its auction target. According to Bank of Ghana data, the government received about GH¢2.4 billion from the T-bills auction across the 91-day and 182-day bills.