Bank of Ghana, stakeholders to deepen Fixed Income Market ——First Deputy Governor

The Bank of Ghana (BoG) says it will continue to work with stakeholders to further deepen the fixed income securities market to provide an efficient secondary market.

It said developing the market and deepening it was in line with the new BoG Act requiring it to cut down lending to the government to five per cent of the previous year’s revenue.

Mr. Millison Narh, First Deputy Governor BoG who disclosed this in Accra yesterday at the opening of a four-day training workshop on Ghana Fixed Income Market (GFIM)  in Accra yesterday said to enhance the secondary trading of the securities, the BoG was licensing primary dealers with the requisite financial resources to provide opportunity for investors willing to sell their holdings.

The training is being organised by the Ghana Stock Exchange, Frontclear and the International Capital Market Association.

Topics being discussed include money market transactions, fixed income fundamentals and fixed income market risk.

The objective he said was to have liquid, transparent and price discovery which has eluded the market for a very long-time.

Currently, Mr. Narh said the emphasis is on fixed income government bonds but this is to be extended to corporate and municipal bonds in the future.

He said the fixed income market provides investors the opportunity to go to the market and offload any quantity they want to provide liquidity.

He said it is the quest to develop a very strong financial sector to support the real sector of the economy.

On the economy, the deputy governor said investor confidence had rebounded as a result of the prudent economic management.

The GFIM’s objective is to provide a fair, orderly, transparent and efficient market for all fixed income and similar securities as well as bring secondary trading activities in fixed income securities in Ghana to international best practice standards.

The principal functions of GFIM are to approve the admission of all fixed income securities (including government and corporate) and other similar securities and to provide a market for the secondary trading of such securities.

All Government of Ghana treasury bills, notes and bonds and Bank of Ghana money market instruments are to be admitted and traded on the GFIM.

In addition, quasi-Government of Ghana institutions’ money market instruments, notes and bonds; corporate notes and bonds; municipal and or metropolitan bonds; supra-national bonds; repos; and other fixed income or money market securities may be admitted and traded on the GFIM.

 

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