Treasury News

The average treasury bill rate for this week?s 91-day bill increased slightly by 0.09 per cent to 26.76 per cent.

There was a much highly increase in the 182 day bill by 0.17 per cent to 27.52 per cent, whilst the year note increased by 01 per cent to 27.01 per cent.

Last Friday, January 24, 2003, the Monetary Policy Committee increased the Prime Rate to 25.5 per cent. The market remained fairly liquid with overnight interest between 22 per cent and the Bank of Ghana reverse repo rate overnight is 21 per cent and seven days of 23 per cent.

The Association of Bankers rates for yesterday stood at ?8,555.91 for the dollar, 13,981.21.81 and ?9,268.90 for the euro.Sterling hit a three-year high against the dollar for third straight trading day as investors deserted the greenback ahead of the key UN report on Iraq weapons inspections later in the season.The dollar has tumbled across the board in recent weeks as concern has grown that the united States may be prepared to take military action against Iraq, even without broad based international backing.

The British pound rose as high as $1.6377. The euro extended last week?s gains to reach yet another three-year high on the dollar yesterday as investors desert the greenback ahead of a key UN report on Iraq weapons inspections due later in the day.The price of OPEC?s basket of seven crudes rose further to $31.56 a barrel on Friday, from Thursday?s $30.18 per barrel.

News of a peace accord between Ivorien rebels and political leaders sent London cocoa futures sharply down on Friday, as speculators rushed to take profit from Thursday?s strong rise. Benchmark March which stared the session with a 30 pound drop, eventually closed 30 pounds lower at 1350 a tonne, having a moved in a 1,364-1,343 pounds range.

Safe-haven gold bullion was in keen demand yesterday as investors lifted prices above the $370.00 an ounce level for the first time in six years, ahead of the release of the UN Iraq weapons inspectors report.Spot gold rose to $372.00 an ounce, well above the $369.10 close on Friday and the highest since December 1996.