The cedi is anticipated to retain its relative stability in the upcoming weeks, supported by the expected release of $370 million from the International Monetary Fund (IMF) later this month.
This disbursement, which represents the fifth tranche under Ghana’s $3 billion Extended Credit Facility, is contingent upon the approval of the IMF Executive Board during its meeting on June 3.
This follows a successful fourth review of Ghana’s economic reform program conducted in April and would increase the total disbursements received under the program to $2.24 billion.
Dr. Johnson Asiama, the Governor of the Bank of Ghana, states that the anticipated inflows, along with additional financing from the World Bank, will assist in strengthening the country’s foreign reserves, further stabilizing the exchange rate, and enhancing confidence in the overall economy.
“As you are aware, this money is released after [approval] by the IMF Board. We are expecting the $370 million, and in addition, the World Bank is also set to make some disbursement. Therefore, these funds will arrive and certainly enhance our reserves further, but that will occur sometime in June,” he remarked.
The IMF program has been vital in Ghana’s post-crisis economic recovery initiatives.
It has offered both financial and technical assistance as the country undertakes fiscal consolidation, structural reforms, and measures for debt sustainability.
The anticipated inflows could offer short-term relief from foreign exchange pressures and help alleviate imported inflation, especially as the mid-year economic cycle commences.
