IN BRIEF

• GHANA
  Fixed Income: The Bank of Ghana’s mid-July 2025 liquidity measures sparked a sharp rise in market liquidity, reviving T-bill demand and driving investor bids beyond the July auction target. This liquidity surge pushed yields lower across T-bills and bonds, fueling an 18.8% rally in the IC Government Bond Index to 115.2pts at a weighted yield of 15.4% (-477bps m/m) and supporting the Treasury’s anticipated return to the bond market through bond re-openings. 

  
   Currency
  The Ghanaian Cedi weakened in July 2025 (-1.4% m/m) as the Bank of Ghana cut its daily FX sales by 49.1% m/m tightening supply and reducing YTD gains to 40.0%. The widening gap between the interbank (10.45/10.55) and forex bureau rates (11.70/12.1) signals a growing FX premium and parallel market pressure, likely prompting upward adjustment in the interbank rate.

 

• KENYA
  Fixed Income: Investor appetite for Kenyan Treasury bills softened at both ends of the T-bill curve in July 2025, effectively reversing the upsurge in demand for the same tenors in the prior month while yields remained largely stable with a downside bias.

  Currency

  The Kenyan Shilling held steady against the US Dollar in July 2025, with improved FX market activity and a notable spike in daily turnover mid-month. The KES stability is anchored by strong reserves of USD 10.7bn (4.7 months of import cover), though investors await the upcoming 12 August 2025 MPC update for potential risks.

 

 

• NIGERIA
  Fixed Income: Nigeria’s T-bill market witnessed two T-bill auctions in July 2025, as in the previous month, with yields dropping sharply across the curve despite weaker investor demand and a hawkish stance from the Central Bank. The CBN retained its policy rate at 27.5% in the July MPC meeting, reaffirming its tight stance to combat inflation — a move we expect to ease downward pressure on yields in the near term.

  
  Currency

  The Nigerian Naira remained broadly stable in July 2025 as recent gains erased earlier losses. Stability was supported by improved oil-driven FX inflows and stronger reserves (USD 40.1bn), while ongoing reforms, orthodox monetary policy, and convergence of official and retail FX rates reinforced investor confidence.