Ghana Sees A Massive Drop In T-Bill Interest Rates

Treasury note (T-bill) rates in Ghana have significantly decreased in recent weeks, indicating robust investor demand and a positive economic outlook.

The 91-day T-bill rate dropped 760 basis points, from 28.34% to 20.79%.

The 182-day T-bill rate decreased 600 basis points, from 28.96% to 22.98%.

The 364-day T-bill rate decreased by 750 basis points, from 30.17% to 22.69%.

Investor interest in T-bills has remained strong in spite of the declining yields. A recent auction saw 43.85% oversubscription with bids totaling GH¢10.56 billion. The 91-day T-bills provided GH¢6.1 billion of the GH¢7.65 billion that the government accepted.

With a significant drop in interest rates since the start of the year, Ghana now leads 11 African nations in rate reduction. Egypt has the highest returns, while Ghana continues to have the second-highest interest rates on the continent.

It is anticipated that the reduction in T-bill rates will relieve government borrowing costs and may result in lower interest rates on loans throughout the economy. If this tendency is effectively translated into lending rates for both individuals and enterprises, it presents a window of opportunity for economic growth.

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Strong investor confidence is reflected in the significant decline in Ghana’s T-bill rates, which might have positive economic effects if lower borrowing costs are passed on to all sectors of the economy.