Treasury Bills rates are decreasing , but Cedi could rise if not managed well – BoG Governor

Dr Johnson Asiamah, the Governor of the Bank of Ghana (BoG), has announced that the rates of Treasury bills (T-bills) are decreasing, which is a positive sign of economic development.

However, he raised an alarm that the country must be proactive in its vigilance because this could put pressure on the cedi if not tightly controlled. He declared this at the National Economic Dialogue on Tuesday, March 4, 2025, on the need for the necessity of integrated efforts between the central bank and financial sector regulators.

Dr Johnson Asiamah expressed that while the falling rate of treasury bills are beneficial, they may also result in a rise in exchange rate when market instability is not properly balanced.

Dr Johnson Asiamah said that “Currently, T-bill rates are coming down, and it is good to see that.  However, there is an emerging risk that if we are not careful, we will see pressure on the cedi going up as a result.” He outlined steps to reduce the risk; the Bank of God has had to make adjustments to the rates on its own bills to maintain macroeconomic stability.

He again declared that “With regard to our Bank of Ghana bills, you would notice that the rates have had to rise, and that’s the way managing the macroeconomy works, and therefore there has to be a balance.”

He drew attention to the importance of close coordination with the financial regulators, disclosing information that he will maintain regular communication with the finance minister to ensure strategic planning.

“I will be engaging in a discussion with the finance minister continuously, and we will try our possible best to achieve that balance going forward. We will ensure accountability,” he assured. Going beyond interest rates and financial system stability, the Bank of Ghana governor also brought to attention financial sector reforms, pointing out that a financial sector strengthening strategy is being implemented under the Fund Programme.

He stated that one of the most important challenges facing the banking sector is a heightened level of non-performing loans (NPLs).

Dr Johnson Asiamah restated with clarity that the central bank’s promise to accountability and engagement with stakeholders involves the private sector and Parliament. He emphasised that while the BoG reports its business operations to Parliament twice yearly, these reports should be closely examined to enhance accountability and decision-making.