As the government's borrowing spree persisted on the domestic market, interest rates on the money market increased to 31.08 percent.
The Bank of Ghana's auction of treasury bills netted the government 3.45 billion, which is 12.91 percent less than the ambitious target of 3.96 billion.
Ghana has the highest interest rates among African middle-income countries.
However, given that the rates are lower than the inflation rate of 43%, the real rate of return on investments is negative.
According to data from the Bank of Ghana, the yield on 91-day bills rose by 0.61 percentage points to 26.70 percent. That of the 182-day bill increased to 27.88% from 27.59% the week prior.
The annual rate increased by 0.39 percent to 31.08%.
In the meantime, demand for the 182-day bill exceeded the 91-day bill for the first time in several years. Investors submitted a bid of 1,69 billion yen for the six-month bill. Each and every bid was approved.
Additionally, investors offered 1,63 billion yen for the 91-day bill for which all proposals were accepted.
For the one-year bill, only 126.67 million were submitted.
OFFERED SECURITIES BIDS (GH) OFFERED SECURITIES BIDS (GH)
91 Day Bill $1,632,000,000 $1,632,000,000
182 Day Bill $1,694 billion $1,694 billion 364 Day Bill $126,770,000 $126,770,000
In sum, 3,453 billion 3,453,00 million
Aim for 3,966 billion 3,396,6 million