‘Should you be cautious in buying T-Bills?’ – Joe Jackson

Economist Joe Jackson has questioned the risks associated with trading the government’s treasury bills. According to him, should investors be careful buying treasury bills, especially at such high-interest rates?

Presenting data on how much the government has generated from T-bills in the last three months, he noted that the government has bought GH¢33.08 billion.

He added that at the average interest rate of 35.62%, it will cost the government GH¢4.416 billion.

In December 2022, the government secured GH¢12.60 billion at an interest rate of 35.72%.

In January however, the government raised GH¢7.30 billion at an interest rate of 35.66%.

In February the bills were oversubscribed consistently to raise GH¢13.13 billion at an interest rate of 35.50%.

However, the government has noted that treasury bills have become its primary source of borrowing since it has been locked out of the international market.

Government has also assured that treasury bills will not be affected by the debt exchange programme.

Should you be cautious in buying T-Bills?
Govt. of Ghana bought GHS 33.08 Billion in the last 3 months.
The weighted avg interest rate was 35.62% and will cost a whopping GHS 4.42 Billion.@tv3_ghana @JoyNewsOnTV @Citi973 @NorvanReports #BrokeGhana #TBillRisk pic.twitter.com/JXW0tVceu8

— Joe Jackson (@Joe_Jackson_GH) March 2, 2023