Ghana’s foreign reserves are set for a significant boost following the approval of $367 million by the International Monetary Fund (IMF) under the fourth review of the country’s 36-month Extended Credit Facility (ECF). This follows closely on the heels of a separate funding of $360 million from the World Bank, signaling renewed international confidence in Ghana’s economic reform efforts.
The IMF disbursement, part of a broader $3 billion support package brings total releases to Ghana under the programme to approximately $2.3 billion. The fresh injection is expected to shore up the Bank of Ghana’s reserves, providing much-needed foreign exchange liquidity at a time when renewed pressure on the cedi remains a concern.
According to the IMF, Ghana’s external position has already seen marked improvement, with stronger-than-expected performance in exports especially gold and higher remittance inflows. The accumulation of international reserves in recent months has surpassed programme targets, and this latest funding is expected to further strengthen the Central Bank’s ability to stabilize the cedi in the face of external vulnerabilities.
“The authorities have made significant strides toward rebuilding international reserves and taken steps to bring inflation down,” said Bo Li, IMF Deputy Managing Director. “The Bank of Ghana should maintain an appropriately tight monetary stance until inflation returns to its target and allow for greater exchange rate flexibility, supported by a formal FX intervention framework.”
Twin Inflows Signal Confidence and Stability
The IMF’s support comes just days after the World Bank approved additional budgetary support to Ghana, bringing a double boost to Ghana’s foreign reserves within a short span. Together, these inflows are expected to calm foreign exchange markets, reduce speculation, and support the cedi’s recovery, which has faced intermittent depreciation pressures in recent quarters.
Market analysts say the timing of the inflows is strategic, especially as the Bank of Ghana continues to manage inflationary expectations while also absorbing the fiscal shocks of 2024. With increased forex availability, the Central Bank will be better positioned to meet legitimate demand for foreign exchange and reduce the volatility that has plagued the cedi.
Policy Commitment and Debt Progress Drive Support
The IMF’s decision follows what it described as a decisive response by Ghana’s new authorities to fiscal slippages recorded toward the end of 2024. Despite pre-election overruns and delayed reforms, the government has enacted a 2025 budget aligned with program goals, implemented public financial management reforms, adjusted electricity tariffs, and tightened monetary policy.
At the same time, Ghana has made significant progress on debt restructuring. A Memorandum of Understanding (MoU) with the Official Creditors Committee under the G20 Common Framework has now been signed by all parties. The government is also actively engaging commercial creditors to finalize agreements consistent with IMF programme parameters.
Looking Ahead
With reserves increasing and fiscal policy back on track, the IMF emphasized that sustained reforms, prudent monetary policy, and a credible FX framework will be key to maintaining cedi stability and restoring macroeconomic confidence.
The Bank of Ghana, for its part, is expected to continue its tight monetary policy stance, minimize direct interventions in the FX market, and focus on longer-term reforms to ensure exchange rate flexibility.
Together, the IMF and World Bank disbursements are being seen as a strong signal of renewed global backing for Ghana’s economic recovery, offering a cushion for the local currency and a platform for improved investor confidence going into the second half of 2025.
