According to the most recent Bank of Ghana report, T-bills were approximately 30% oversubscribed as the government sought additional funding for its immediate obligations.
The BoG reports that the treasury market has experienced rising interest rates for a fourth week in a row.
The 182-day bill grew by 0.10% to 22.57%, while the 91-day T-bill jumped by 0.07% to 19.96%.
The one-year bill also increased, from 26.90% the previous week to 27.26% this week.
The 23 banks of the nation will suffer significant losses as a result of a lower coupon rate and a longer maturity period of 15 years, according to a new analysis of the domestic debt restructuring in Ghana.
Following a first loss of GHS 10 billion in liquidity in 2022 alone, this report by Dr. Richmond Atuahene and K. B. Frimpong estimates that the banks will lose an additional 6.1 billion as a result of these measures.
Based on the initial coupon rate of 19.3% per year, the 23 banks would have produced a positive cash flow of around 10.1 billion for the period prior to the establishment of the Domestic Debt Exchange Programme (DDEP).
However, the longer maturity length and lower coupon rate will have a significant negative impact on their returns from investments in Government of Ghana Bonds, creating a liquidity gap of almost 10.3%. This liquidity gap is anticipated to widen if the typical customer deposit rate was around 10% per year but later fell to a weighted average rate of 9% per year.