, a policy think tank focused on social reform and economic governance, has raised serious concerns over what it describes as “economic propaganda” by the Finance Minister, Dr. Cassiel Ato Forson, following the government’s repeated failure to meet its Treasury bill (T-bill) targets.){kind=link}
The Institute of Economic Research and Public Policy (IERPP), a policy think tank focused on social reform and economic governance, has raised serious concerns over what it describes as “economic propaganda” by the Finance Minister, Dr. Cassiel Ato Forson, following the government’s repeated failure to meet its Treasury bill (T-bill) targets.
Recent data released by the Bank of Ghana (BoG) shows that the government fell short of its T-bill target by GH¢2.69 billion, marking the third consecutive week of underperformance in the short-term debt market. Out of a targeted GH¢4.39 billion, the government received bids amounting to only GH¢1.69 billion – an undersubscription rate of 61.46%.
In a breakdown of the figures, the 91-day bill saw GH¢3.38 billion tendered with only GH¢1.45 billion accepted. The 182-day bill attracted GH¢501.17 million in bids, but just GH¢81.09 million was accepted. For the 364-day instrument, GH¢176.26 million was tendered and GH¢161.26 million accepted.
The IERPP, in a strongly worded statement, accused the Finance Minister of misleading the public about the state of the economy, stating that the market is now revealing the truth. “Dear Minister of Finance, the markets will always expose you when you do propaganda with the economy,” the statement read. “How can T-bills sell between 15–20 percent when inflation is still high at 23%? Monetary policy has just seen a spike to 28%! Mr. Minister, which rational investor would invest in such useless instruments?!”
Interest rates on Treasury bills have continued to hover between 15% and 18%, with recent declines in yields: the 91-day bill dropped by six basis points to 15.65%, the 182-day by 23 basis points to 16.50%, and the 364-day by two basis points to 18.83%.
The missed targets come at a time when the Bank of Ghana has raised its policy rate by 100 basis points to 28% in an effort to tackle persistent inflation and maintain macroeconomic stability. Dr. Johnson Asiama, Governor of the BoG, during the 123rd Monetary Policy Committee (MPC) press conference, emphasized the need for a tighter monetary policy and robust liquidity management to re-anchor disinflation.
“While headline inflation has declined marginally, it remains a concern. Food and non-food inflation remain significantly above expectations, and core inflation is still elevated,” Dr. Asiama noted. “Preventing second-round effects from these increases will be essential, and this will require a policy reset.”
Analysts believe the combination of high inflation, rising interest rates, and weak investor confidence is discouraging demand for short-term government debt, particularly as yields remain unattractive relative to the macroeconomic risk profile.
The IERPP has called on the government to provide transparent and realistic economic assessments and stop what it deems “a PR-driven approach” to economic management. As fiscal and monetary challenges mount, the pressure is growing for the Finance Ministry to respond with more credible reforms and restore investor confidence in Ghana’s financial markets.