The Ghana Stock Exchange (GES) has set up a task force to look into the possibility of trading treasury bills on the exchange. The move is to deepen the financial markets and create a vibrant secondary market in the development of corporate bonds market.
Mr Yeboah Amoa, Managing Director of the GSC, speaking at a day's seminar for bank executives in Accra yesterday stated that in areas with developed capital markets, treeasury bill rates are used as a bench mark in pricing corporate and other bonds.
The seminar organised by Prime Investment Management Limited and the GSE was under the theme "Developing a vibrant secondary market through treasury bill swaps."
Mr.. Amoa said when this market is well developmed, it will increase the sale of treasury bills and thus will help in the Bank of Ghana's effort to mop-up excess liquidity outside the banking system.
He said this will also ease the country's inflationary pressure while at the same time help complement the country's equity market. Mr. Richanrd Asiamah, Managing Director of Prime Investment said before the financial markets become very vibrant, the major players must understand the techniques and language of the market.
He said dealers will also have to learn how to structure and price treasury bill swaps.
