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Drop in Treasury bill rates for June 2020 – BoG

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Governor of the Bank of Ghana Dr. Ernest Addison has stated that the 91-day Treasury bill rate for the month of June 2020 has declined by 0.8 percent which is now stands at about 14.0 percent from the 14.8 percent recorded in June 2019.

At the 95th meeting of the Monetary Policy Committee of the central bank yesterday,The Governor of the Bank of Ghana Dr Ernest Addison indicated that, the interest rate on the 182-day instrument has declined to 14.1 percent from 15.2 percent for the period.

He added the rates on the 2-year, 3-year and 5-year instruments decreased marginally to 18.8 percent, 18.9 percent, and 19.3 percent respectively, from 19.8 percent, 19.7 percent, and 19.8 percent.”

He added that the Yields on the 6-year, 7-year, 10-year, and 15-year bonds remained unchanged at 21.0 percent, 16.3 percent, 19.8 percent, and 19.8 percent, respectively. Yield on the 20-year instrument has moved up from 20.3 percent from September 2019 to 21.5 percent in June 2020”

The Governor also noted, interest rates on the money market reflected downward trends at the short end and mixed trends at the medium to long-term segments of the market.

Treasury bills on the other hand, are risk-free investment that entail short-term loans that are guaranteed by the government and used to finance various of its operations. It also offers a benchmark for determining the value of any investment and is cited as one of the most secure and popular investment options in Ghana.

The maturity of treasury bills spans through a 91-day and a 365-day period with each of them offering different returns on investments.

Paa Kweku Eshun Talksafrica.com

Written by EDITORIAL STAFF

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