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GHS2.63b to be borrowed by government through treasury bills this week

In this week’s auction, government hopes to borrow GH2.63 billion through treasury bills.

The subscriptions are expected to come from the 91,182, and 364-day bills.

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Last week, the auction results for the treasury bill auction held on June 2, 2023, showed that the government secured GH¢2.40 billion.

This indicated an oversubscription of GH¢324.01 million from the target of GH¢2.08 billion.

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This will be the first time in four weeks that the government has exceeded its treasury bill target.

Interest rates are still high nonetheless, increasing from 19% to almost 23%.

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The majority of the subscriptions came from the 91-day bills, which received GH¢1.59 billion at an increased interest rate of 21.15%.

The 182-day bill received bids worth GH¢816.62 million at an interest rate of 23.93%.

The assumption was that due to the finalization of Ghana’s IMF deal, investor confidence would rise, leading to the government achieving its target or even surpassing it.

But even after that, treasury bills were being undersubscribed.

It is, however, not far-fetched to assert that investor confidence is gradually being restored.

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