Ghana’s cedi is expected to remain relatively stable in the coming weeks, supported by the imminent release of $370 million from the International Monetary Fund (IMF). This payment represents the fifth tranche under Ghana’s $3 billion Extended Credit Facility, contingent on approval by the IMF Executive Board scheduled for June 3. The disbursement follows a successful fourth review of the country’s economic reform program in April.
Once approved, the tranche will increase total funds received under the IMF program to $2.24 billion. Bank of Ghana Governor Dr. Johnson Asiama highlighted that this influx, alongside anticipated additional financing from the World Bank, will bolster Ghana’s foreign reserves. Strengthening reserves is expected to stabilize the exchange rate and enhance overall economic confidence.
The IMF program has played a pivotal role in Ghana’s economic recovery after recent crises by providing financial resources and technical guidance. It supports fiscal consolidation, structural reforms, and measures aimed at ensuring debt sustainability, helping to steer the country back toward economic stability.
With the tranche release, Ghana may see short-term relief from foreign exchange pressures, which have affected the cost of imports and contributed to inflation. This financial boost is particularly timely as the mid-year economic cycle begins, potentially easing inflationary trends driven by imported goods.
Overall, the anticipated IMF disbursement signals positive momentum for Ghana’s economy, reinforcing efforts to maintain currency stability and sustain fiscal discipline amid ongoing reforms.
Source: Citi newsroom