In its latest auction held on March 10, 2023, the government of Ghana successfully secured GH¢3.88 billion from the sale of treasury bills, an oversubscription of the GH¢1.10 billion it was targeting. The government secured GH¢2.90 billion from the 91-day bill and GH¢972.49 million from the 182-day bill, exceeding its set target of GH¢2.775 million. However, interest rates have dropped significantly to 18.52% for the 91-day bill, 22.8%, and 21.27% for the 182-day bill.
The auction results from the Central Bank showed that subscriptions surpassed the government’s target, but the government sold less than the GH¢3.31 billion it secured in last week’s auction. This drop in interest rates has been attributed to the successful debt restructuring program, the Domestic Debt Exchange program, according to the government. The program has reduced the rate of Treasury Bills from 35 to 24 percent, resulting in the significant reduction in interest rates.
The Deputy Finance Minister argued that the Domestic Debt Exchange program is yielding the necessary results for economic growth and transformation. He stated that the reduction in the coupon rate of T-Bills will lead to a further reduction in interest rates, which will have positive effects on inflation, cost of borrowing for private individuals, and restore economic stability and inclusive growth of the economy. Last week, the treasury bill rate in the country was at 35 percent, but today, as we speak, the treasury bill rate has been reduced to 24 percent, even with an oversubscription of 121 percent.