Ghana has saved approximately GH¢1 billion following a significant reduction in Treasury Bill (T-Bill) rates, according to Finance Minister Cassiel Ato Forson. He highlighted that the savings from the lowered T-Bill rates will be redirected toward critical sectors to drive national development and economic stability. This move is part of the government’s broader efforts to reduce borrowing and lower debt costs, ultimately benefiting the economy.
Speaking at the National Economic Dialogue on March 3, 2025, Ato Forson stressed the importance of managing the nation’s debt and generating more funds for long-term development. The reduction in Treasury Bill rates was a key topic during the event, underlining how such savings can be reinvested into critical areas like infrastructure, education, and healthcare.
In late February 2025, Treasury Bill yields saw a drastic decline, with rates that had started the year between 28% and 30% falling to a range of 20% to 22%. This marked one of the most substantial drops in decades. The change was driven by strong investor demand and the Treasury’s decision to reject higher bids, which led to revised yield expectations for government debt instruments.
The 91-day T-Bill, which began the year at 28.34%, is now yielding 20.79%, a drop of 760 basis points. Similarly, the 182-day bill fell from 28.96% to 22.98%, while the 364-day bill dropped from 30.17% to 22.69%. This sharp decline in T-Bill rates is a positive development for Ghana, reducing the cost of borrowing and creating savings for reinvestment into economic growth.
SOURCE: CITI NEWSROOM