T-Bill Reduction Saves Ghana GH¢1 Billion, to be Channelled into Critical Areas - Ato Forson

Accra, Ghana - 03 Mrch, 2025 - Ghana's Finance Minister, Cassiel Ato Forson, has announced a significant windfall for the country, revealing that a recent drop in Treasury bill rates has saved Ghana approximately GH¢1 billion.

Speaking at the National Economic Dialogue in Accra, under the theme “Resetting Ghana: Building the Economy We Want Together', on March 3, the Finance Minister noted that this significant reduction in interest rates is expected to have a positive impact on the country's economy, allowing for increased investment in critical sectors.

“The recent reduction in T-Bills alone is saving Ghana about one billion Ghana cedis, and that amount can be channelled into critical areas of the economy. We need to take steps to reduce borrowing and lower the cost of borrowing so that we can reinvest the savings into national development,” he stated.

The decline in Treasury bill rates has been dramatic, with rates falling from between 28% and 30% at the start of the year to an average range of 20% to 22%. This shift is attributed to strong investor demand and the government's strategic decision to reject higher bids, which has influenced shifting yield expectations.

The latest auction results from the Bank of Ghana reveal a notable decline in Treasury bill rates across all tenors. Specifically, the 91-day Treasury bill rate has dropped by 760 basis points, from 28.34% to 20.79%. Similarly, the 182-day bill has fallen by 600 basis points, from 28.96% to 22.98%, while the 364-day bill has declined by 750 basis points, from 30.17% to 22.69%.

Source: Lead News Online