1. What is Ghana Treasury Bill Rate?

The Ghana Treasury Bill Rate represents the interest rate at which the Government of Ghana borrows money from the public for short-term periods. It's a key indicator of the country's short-term borrowing costs.

2. How Does the Calculator Work?

The calculator uses the Treasury Bill equation:

Where:

• \( Face \) — Face value of the treasury bill (GHS)
• \( Rate \) — Interest rate (in decimal form)
• \( Days \) — Duration of the investment in days

Explanation: The equation calculates the simple interest earned on a Ghanaian treasury bill based on its face value, annual interest rate, and holding period.

3. Importance of Treasury Bill Calculation

Details: Accurate interest calculation helps investors understand their potential returns and compare different investment options in the Ghanaian money market.

4. Using the Calculator

Tips: Enter face value in GHS, rate in decimal form (e.g., 0.15 for 15%), and days of investment. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: How often are Ghana T-bills issued?
A: The Bank of Ghana issues 91-day, 182-day, and 364-day Treasury bills weekly through a competitive auction process.

Q2: What's the minimum investment in Ghana T-bills?
A: The minimum investment is typically GHS 100, making it accessible to both institutional and retail investors.

Q3: Are T-bill returns taxable in Ghana?
A: Yes, interest earned on Treasury bills is subject to a 15% withholding tax in Ghana.

Q4: How does this differ from compound interest?
A: Treasury bills use simple interest calculation. The interest doesn't compound during the investment period.

Q5: Where can I check current Ghana T-bill rates?
A: Current rates are published on the Bank of Ghana website after each auction, typically on Fridays.