Ghana May Sell Mid-Week Bills After Offers Stopped on Low Demand

Ghana’s central bank may offer one-and two-month debt for the first time in five weeks after the sales were halted because of low demand from investors.

The Bank of Ghana will open the auction on May 21 if an assessment of market liquidity by the Accra-based institution shows a need, Collins Antwi, assistant director of treasury, said by phone today. It’s also considering selling nine-month notes, he said. That would be the first issuance since March 19, according to the bank’s website.

The so-called Bank of Ghana Bills were reintroduced in April 2012 as part of monetary-policy measures taken to shore up the cedi, which dropped 36 percent in the past two years and is Africa’s worst performer against the dollar in 2014. The continued slide prompted the central bank to raise the cash-reserve ratio for lenders to 11 percent from 9 percent on April 10.

“The situation became a bit tight” after the ratio change, Antwi said. “Buyers are not willing to roll over” maturing notes, he said.

On April 9, one-month bills yielded 23.3 percent and the two-month notes were at 23.4 percent. The last nine-month securities had a yield of 21.6 percent. The central bank also sells 91- and 182-day Treasury bills and one- and two-year bonds on Fridays.

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