Ghana is just a week away from a crucial milestone in its economic recovery program as the Executive Board of the International Monetary Fund (IMF) prepares to meet and consider the country’s fourth review under the ongoing Extended Credit Facility (ECF) programme. This is according to its published schedule.
The Executive Board review, which follows a staff-level agreement reached in April 2025, is expected to unlock $370 million, the fifth tranche of Ghana’s $3 billion bailout programme agreed upon with the IMF in 2023. The anticipated disbursement will come on the heels of a major boost from the World Bank, which last week approved $360 million in development support for Ghana.
Together, these inflows are expected to significantly increase the country’s foreign exchange reserves, providing critical backing for the Ghana cedi and broader macroeconomic stability efforts.
The IMF staff-level agreement was reached following extensive discussions with Ghanaian authorities in Accra, where progress was made on key structural reforms, fiscal discipline, and debt management targets.
Currency Pressure and Market Dynamics
The cedi, which saw strong gains in April following positive investor sentiment and ongoing debt restructuring efforts, has since stabilized in June but experienced occasional slippage, particularly in the forex bureau market where rates are now quoted above GH¢12 to the dollar.
While the official interbank rates remain relatively stable, the Bank of Ghana (BoG) has slowed its interventions in the interbank market in recent weeks. This has been interpreted by analysts as a signal of confidence that there is sufficient dollar liquidity in the system to meet current demand.
However, with the twin inflows from the IMF and World Bank imminent, experts suggest the BoG may soon step up dollar injections in the market to reinforce confidence and strengthen the cedi further, potentially leading to renewed appreciation of the local currency in the short term.
Macroeconomic Outlook
The funds are also expected to help Ghana close its external financing gap, meet balance of payment needs, and support ongoing reforms in public financial management, energy sector governance, and social protection systems.
Economists believe the combined $730 million support could not have come at a better time as the country continues to rebuild trust in its financial system and debt sustainability program following a tumultuous two-year period marked by debt defaults and inflation surges.
Inflation, which peaked above 54% in 2022, has since declined significantly to 18.4% in May, due to tighter fiscal policies, improved food supply, and relative currency stability.
What’s Next
If approved by the IMF Board, the $370 million disbursement will bring Ghana’s total receipts under the IMF programme to nearly $2 billion, helping to anchor the country’s economic recovery agenda.
The IMF Board meeting is expected on July 7th, and its outcome will be keenly watched by investors, financial institutions, and international partners alike.
