IMF Commends BoG for rebuilding international reserves

The International Monetary Fund (IMF) has expressed its satisfaction with the progress made by the Bank of Ghana (BoG) in its dollar accumulation programme aimed at rebuilding the country’s international reserves.

According to sources close to the IMF mission, the BoG has made significant strides in improving its position since Ghana signed up to the IMF programme in 2023.

The IMF staff commended the BoG for keeping a prudent monetary policy stance, which has helped to sustain a rapid reduction in inflation.

The team also acknowledged that the required measures have been put in place to strengthen and preserve financial sector stability, including the implementation of banks’ recapitalization plans.

In a recent announcement, Governor of the BoG, Dr. Ernest Addison revealed that Ghana’s international reserve position has improved substantially,

reaching US$6.59 billion at the end of April 2024, representing 3 months of import cover compared to US$5.91 billion (2.7 months of import cover) at end-December 2023.

The BoG has also added $700 million to its reserves this year.

Also read; EC Chairperson Reiterates Commitment to Transparent Electoral Process

The IMF visit was at the request of the Executive Board to get an update on Ghana’s economic data, following the country’s second review under the programme.

The team was particularly interested in getting latest numbers on the economy up to mid-2024, as well as establishing whether Ghana is on track and getting an update on the outlook for the economy in the near future.

Despite the progress made, the IMF staff expressed concerns about Ghana’s high food inflation, despite overall inflation having reduced.

The team also raised concerns about payments being made to Independent Power Producers and its impact on BoG’s reserves.

In its assessment, the IMF Board noted that the medium-term outlook remains favourable but subject to downside risks, including those related to the upcoming general elections.

The Board warned that sustaining macroeconomic policy adjustment and reforms are essential to fully and durably restoring macroeconomic stability and debt sustainability,

especially during the upcoming electoral period, while fostering a sustainable increase in economic growth and poverty reduction.

Overall, the IMF’s commendation of the BoG’s efforts is a positive development for Ghana’s economy, indicating that the country is on track to achieving its goals under the programme.

However, it is crucial that Ghana continues to implement sound economic policies and reforms to ensure sustained growth and stability.

Kindly share our story on; IMF Commends BoG for rebuilding international reserves

For more stories; click Here.