Investors in Ghana have started abandoning treasury bills following the continuous decline in TBill rates.

Most of the investors are now exploring other investment facilities.

At the beginning of 2016, the Treasury Bill rates for the 91 and 182 days was at 22 and 23 percent respectively.

READ ALSO: The cedi will be stable – BoG governor

However, according to the Bank of Ghana, as at Wednesday (January 4, 2017) the rate for 91 day TBill had dropped further to 16.7 percent while that of 182 days stood at 17.91 percent.

The Director and Head of Market at Barclays bank Ghana, Kobla Nyaletey in an interview with Accra-based Citi FM said the decline is mainly because of the drop in inflation as well as the increase in liquid cash for most banks for the period.

READ ALSO: Ghana will not meet budget deficit target- Terkper

“Inflation has dropped from about 19 to 15.5 percent and so naturally when inflation begins to decline, we should see interest rates also move down so that is the movement that we have began to see. Indeed the 91 day T-Bill declined quite significantly but all other interest rates in the market have also been on the declining path over the past few weeks and months.”

“Typically in the 4th quarter in particular, the mass liquidity improves on the back of the commencement of the cocoa season. As a result, liquidity in the banking sector has been very robust over the past few months and that is also being driven by banks pushing this liquidity into government paper,” he added.

READ ALSO: Akufo Addo says he's determined to revive economy

Moreover, the relative slow pace in the growth of credit has compelled banks to consider government instruments which equally have forced interest rates to drop.

He also intimated that the trend is likely to run continue throughout the year.

Nevertheless, Treasury Bills are still one of the most patronised investment instruments by most investors in Ghana.