The Government of Ghana borrowed GH¢8.25 billion on the treasury market in April 2023, which is an astonishing 18.20% above its gross target.
The Government of Ghana exceeded its gross target by 18.20% in April 2023 by borrowing GH¢8.25 billion on the treasury market. The funds were used to refinance maturities worth ¢6.3 billion.
The yields for 91-day and 182-day T-bills increased to 19.95% (+56 basis points month-on-month) and 22.71% (+85 basis points month-on-month) respectively, while the 364-day T-bill settled at 27.26% (+160 basis points month-on-month).
Analysts predict that yields might settle lower at the end of May 2023 due to the improving economic outlook, although there is scope for a further rise this week.
Investment firm IC Securities stated that “Yields will resume the downturn in late 2023 with the IMF programme as a catalyst”. After plummeting from a peak of 35.0% to between 18.5% and 26.8% by mid-March 2023, yields on T-bills have found renewed upward drive from the unexpected 150 basis points hike in the policy rate.
The International Monetary Fund (IMF) has been working with Ghana since April 2015 to help restore macroeconomic stability and sustainable growth through financial assistance and policy advice. The IMF programme is expected to catalyze the resumption of the downturn in late 2023.
Ghana’s economy is expected to grow by 4.5% in 2023, up from an estimated growth rate of 4.1% in 2022. The country’s economic growth is expected to be driven by strong domestic demand, particularly in the services sector.