The Minister of Finance, Cassiel Ato Forson, has revealed that Ghana has saved approximately GH¢1 billion due to the recent reduction in Treasury bill rates.
He stated that the savings would be redirected toward critical sectors of the economy to promote development and ensure a stable and prosperous environment for Ghanaians.
Speaking at the National Economic Dialogue on March 3, under the theme “Resetting Ghana: Building the Economy We Want Together,” Ato Forson emphasised the need to reduce borrowing and lower the cost of debt as part of efforts to generate more funds for national development and economic restructuring.
“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.
On Friday, February 28, 2025, Treasury bill yields saw a sharp decline, marking one of the most significant drops in decades.
According to the latest auction results from the Bank of Ghana, rates that started the year between 28% and 30% have now fallen to an average range of 20% to 22%.
This steep decline follows strong investor demand and the Treasury’s recent rejection of higher bids, which has influenced shifting yield expectations.
At the start of the year, the 91-day Treasury bill stood at 28.34% but has now dropped to 20.79%, reflecting a 760-basis-point decline. Similarly, the 182-day bill has fallen from 28.96% to 22.98%, a 600-basis-point drop.
The 364-day bill, which previously yielded 30.17%, has now declined to 22.69%, marking a significant 750-basis-point reduction.
