Treasury bills are short-term debt or money market instruments (securities) issued by the Government of Ghana with a maturity of less than one year. They usually have a duration of 91 days and 182 days. Treasury bills are issued at a discount to face value, which means that instead of paying fixed interest like traditional bonds, they earn income on the difference between face value and the cost of buying them. The Bank of Ghana also regularly issues short-term notes to back its currency.

The Government of Ghana aimed at raising 2.89 billion Ghana cedis from the treasury bills auction on Friday 24th February 2023.  The T-bills were Oversubscribed by 75% , according to the auction outcomes published by the Central Bank of Ghana.

The 91-days treasury bills received a bid amounted to 3 billion Ghana cedis.  The 3 months received a bid worth 2.93 billion Cedis and the one year had about 1.46 billion cedis, so as the 182-days T-bills were auctioned around 665 million cedis.

According to the report, all the bids were accepted by the Government .

With the yields on the various Treasury bills went down marginally

91-days T-bills    0.12% down  with a new rate of 35.54%

6 months T-bills also fell by 0.16% to a new yield rate of 35.84%

364-days bill was maintained at 34.12%

Based on the demand of the Government treasury, people are arguing that the Citizens still trust the Incumbent government and others are saying otherwise

 The issuance of the treasury bills by the Central Bank of Ghana comes with some questions, is it to provide the Government with fund to manage a budget deficit or it is an open market operations (OMO)

Source; joyonline

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