The government has missed out on its treasury bills target in its latest auction after recording an oversubscription last week.
The government recorded a total of GHS4.394.54 billion in its latest auction falling short of its target of GHS5.881 billion by GHS129.67 million.
During the auction on September 18, 2024, and issuance on September 23, 2024, GHS3.778.07 billion was secured for the 91-day bill.
However, the government accepted GHS441.43 million for the 182-day bill and GHS175.04 million for the 365-day bill.
Last week, the government sold a total of GHS5.529 billion.
Interest rates were set at 25.01% for the 91-day bill, 26.81% for the 182-day bill, and 28.07% for the 365-day bill.
According to the Bank of Ghana’s results, all bids tendered in this week’s auction were accepted.
Meanwhile, the government has set a target of GHS7.438 billion for its next auction.
However, an Economist at the University of Ghana, Dr. Lord Mensah, has taken a swipe at the government for the manner in which it is
borrowing.
According to him, the government is disregarding the treasury bills issuance calendar and borrowing anyhow.
Treasury bills have become the government’s primary source of borrowing since it no longer has access to the international capital market.
On his X page, the economist said: ‘If you want to know how low the economy has sunk, look at the frequency and the volumes of T-bills issued by the Ghana government. This government has thrown away the treasury bill issue calendar and they’re doing their own thing. Borrowing left and right from the money market.’
Source: Ghana Web