Ghana’s Treasury bill (T-bill) rates have fallen below 20% for the first time in nearly two years, signaling a shift in government borrowing strategy and renewed investor confidence in the economy.

According to the Bank of Ghana, the latest auction saw the 91-day T-bill rate drop to 17.72%, the 182-day bill fall to 18.97%, and the 364-day bill decline to 19.98%.

This marks a sharp decrease from the previous week’s rates, which were above 20%.

The decline suggests a reduced reliance on short-term domestic borrowing as the government pursues fiscal consolidation. In January 2025, authorities raised GH¢38.45 billion through T-bills, slightly below the GH¢40.57 billion offered, rejecting aggressive bids to push yields lower.

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President John Dramani Mahama attributed the falling rates to increased investor confidence in Ghana’s fiscal management.

“The continuing decline in T-bill rates signals growing investor confidence in the country’s fiscal management,” he stated in his State of the Nation Address.

The drop in interest rates is expected to lower borrowing costs for businesses, reduce the government’s debt servicing burden, and stimulate private sector investment.

However, analysts warn that sustained economic stability and inflation control will be essential to maintaining these gains.

With Ghana still locked out of international capital markets and its domestic bond market recovering from debt restructuring, Treasury bills remain a key tool for financing the budget deficit.

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