Source: newsthemegh.com
As long as there was enough liquidity in the market, the government was able to raise more money than expected at its treasury bill auction last week.
Sales of Treasury bills exceeded their objective by 13.21%, or GHS 2,601 billion.
In contrast to the government’s objective of GHS 2.60 billion, investors offered GHS 2.94 billion, according to data from the Bank of Ghana.
The 91-day bill, in which the government accepted all GHS 2.20 billion in bids from investors for the three-month financial instrument, accounted for a significant portion of the offers.
Additionally, the 182-day offered GHS 322.56 million, but the government only accepted GHS 289.19 million.
The government, however, accepted the entire GHS 415.78 million 364 Day bill offer.
On the money market, interest rates kept rising in the interim. The government borrowed heavily through the market for Treasury bills, which caused the rates to increase to roughly 31.97 percent.
The market for Treasury notes has allegedly become the only place for the local government to raise money to support its activities, according to some analysts and market observers.
Ghana cannot raise money on the international capital market because of its poor credit standing and hefty debt loads.