Ghana’s fixed income market witnessed a dramatic slump in June 2025, with trade volumes plunging by a staggering 86%, marking the lowest activity level in over a year, according to data released by the Bank of Ghana.
A total of just 4,900 trades were recorded in June, down sharply from 34,400 transactions in May.
The drop comes after months of relatively stable performance, with the market kicking off the year strongly at 50,100 trades in January. Activity had gradually tapered to 47,000 in April, then further to 34,400 in May, before the June collapse.
Despite the dramatic drop in the number of transactions, the value of securities traded held firm at nearly ₵9.9 billion. This suggests a shift in market dynamics, with fewer but significantly larger transactions—likely dominated by institutional investors—sustaining overall market value.
The fixed income market serves as a critical barometer for Ghana’s economic environment, influencing government borrowing costs, corporate debt instruments, and the performance of pension funds. Analysts say June’s figures point to a significant decline in retail or mid-tier investor activity, likely due to shifting risk perceptions or macroeconomic recalibrations.
The earlier upward momentum in the market had been largely driven by government securities issuances and corporate refinancing efforts. However, June’s data signals a cooling in investor enthusiasm, even as institutions continue to transact at high values.
The Bank of Ghana has yet to issue commentary on the abrupt decline, but market watchers suggest the trend warrants close monitoring, especially if low trade volume persists into the second half of the year. The evolving investor behavior could have broader implications for fiscal planning and market liquidity as the country navigates ongoing economic adjustments.
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