Government targets GH¢3.21 billion from T-bills auction this week

The government is targeting GH¢3.21 billion from treasury bills auction this week. The target is expected to be generated from the 91, 182, and 364-day treasury bills.

This amount is higher than the government’s target of GH¢2.78 billion from last week. It is expected that part of the amount for this week’s auction will be used to refinance maturing bills.

The government secured GH¢3.88 billion from the sale of treasury bills in its latest auction held on March 10, 2023. This was an oversubscription of the GH¢1.10 billion it was targeting.

However, interest rates have dropped significantly to 18%.

According to the auction results from the Central Bank, the government secured GH¢2.90 billion from the 91-day bill and GH¢972.49 million from the 182-day bill.

The subscriptions surpassed the government’s set target of GH¢2.775 million but it sold more than the GH¢3.31 billion secured by the government in last week’s auction. Interest rates, however, were reduced to 18.52% for the 91-day bill, 22.8%, and 21.27% for the 182-day bill.

The fall in the rates has been attributed to the successful debt restructuring program.

According to the government, the Domestic Debt Exchange programme has accounted for the reduction in the rate of Treasury Bills from 35 to 24 percent.

The Deputy finance minister argued the programme is yielding the results necessary for economic growth and transformation.

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