The latest offering of Government of Ghana Index Linked Bonds, issue number 0000000508, on August Friday 16, 2002 saw the GHC 15 billion of bonds offered, with the full issue taken up. The issue date of this paper is March 18, 2002 with maturity on March 14, 2005; the reference CPI rate on date of issue being 228.1136.

The weighted average on the 91-day bill continued its movement upwards from 25.52 per cent to 25.74 per cent, whiles that of the 182-day bill also moved up from 26.81 per cent to 26.91 per cent. The weighted average rate on the 1-year note remained uncharged at 27.00 per cent.

The overnight market money continues to see a steady increase in interest rates. Interbank rates for the week ended August 16, 2002 ranged between 22.75 per cent and 23.5 per cent, due to the relatively tight liquidity that has existed in the market over the last few weeks.

Both the Interbank and parallel foreign exchange (FX) markets have been especially the USD and EUR stabilising against the local currency, since last July. Apparent central bank intervention; rumours of increased and persistent intervention; rumours of increase FX inflows from HIPC relief funds; and the advent of the cocoa season and ?construction? season are factors that appear to be leading this rally. These factors are likely to support the local currency. USD selling has stagnant between ?8,180 to ?8,200; EUR dipped to ?7,950, with sterling rates following suit at ?1,2550.

The US Dollar eased against the euro on Monday with some bears expecting weakness in US trade figures later in the week, but it squeezed out gains against the yen on a drop in Tokyo stock prices. The market showed limited reaction to a warning from rating firm Standard and Poor?s that further delays by the Japanese government in implementing structural reforms could adversely affect the country?s sovereign ratings.

The euro extended gains against the yen, climbing to 116.17 yen against 115.74/96 GBP was also stronger at 181.76 yen against 181.05/07 in late US trade. It fell briefly to 179 yen on Thursday. EUR advanced against the dollar to 98.56 cents, against 98.37 in late New York trading.

Average Currency Movements Against the Cedi

 02/Aug/02        09/Aug/02    16/Aug/02
 USD   8,086.23         8,102.13      8,100.46
 GBP  12,646.50        12,382.20     12,438.21
 CHF   5,505.15         5,368.88      4,9255.52
 JPY      67.91            67.05          68.98
 SEK     841.35           846.61         859.27
 EUR   7,978.06         7,856.99       7,940.06
 XOF      12.16            11.98          12.09