Cedi to strengthen as Ghana awaits $370m IMF release
By Praisebell Rosemond Larbi
The Ghanaian cedi is expected to maintain stability in the coming weeks, supported by the anticipated release of $370 million from the International Monetary Fund (IMF) under Ghana’s ongoing $3 billion Extended Credit Facility (ECF) program.
The disbursement, scheduled for June pending IMF Executive Board approval, will be the fifth tranche of the bailout program. It follows a successful fourth review of Ghana’s economic performance in April and will bring total disbursements under the facility to $2.24 billion.
The incoming funds, together with expected additional financing from the World Bank, are set to significantly strengthen the Bank of Ghana’s (BoG) foreign exchange reserves. This boost is projected to ease forex market pressures, reinforce investor confidence, and support ongoing economic recovery efforts.
Speaking on the expected inflows, Governor of the Bank of Ghana, Dr. Johnson Asiama, noted that the external support will be critical in anchoring the cedi and stabilizing macroeconomic indicators.
“As you are aware, this money is released after approval by the IMF Board. We are expecting the $370 million, and not only that—the World Bank also stands to make some disbursement. So those monies will come in and certainly build our reserves further, but that will be somewhere in June,” Dr. Asiama stated.
The disbursement comes at a crucial time for Ghana, as the mid-year economic cycle begins and global commodity prices remain volatile. Strengthening the country’s international reserves will enhance the central bank’s capacity to intervene in the forex market when needed and maintain a more stable exchange rate regime.
In recent months, the cedi has come under pressure due to seasonal demand for foreign currency, repatriation of profits by multinational firms, and the lingering effects of global inflation. However, the IMF-backed program has played a key role in dampening speculative activity and keeping the currency relatively stable compared to 2022 and 2023 levels.
Analysts suggest that the projected $370 million from the IMF, in addition to the World Bank’s potential inflows, could provide a short-term buffer against further depreciation and help moderate imported inflation.
Ghana entered the IMF program in 2023 following a sharp economic downturn triggered by high public debt, soaring inflation, and a depreciating currency. The ECF arrangement has since become central to the government’s economic recovery strategy, offering both financial support and technical assistance to implement wide-ranging reforms.
The program focuses on fiscal consolidation, structural transformation, and debt sustainability. Since its inception, the IMF facility has helped Ghana undertake key reforms in public finance management, domestic revenue mobilization, and debt restructuring.
The positive outcome of the fourth review earlier this year signaled Ghana’s continued commitment to these reforms and unlocked access to the next tranche of funding.
With the expected inflows, the BoG is in a stronger position to manage liquidity, ensure adequate foreign exchange supply, and maintain stability in the banking and financial sectors. The stability of the cedi is also expected to positively influence business sentiment, particularly among importers and manufacturers who are sensitive to currency volatility.
Moreover, investors—both local and international—are closely watching Ghana’s performance under the IMF program as a barometer for macroeconomic stability and policy discipline.
While challenges remain, including high interest rates and a fragile global economic environment, the anticipated IMF and World Bank support offers Ghana a vital window to solidify its post-crisis recovery and lay the groundwork for more sustainable growth.
The IMF Executive Board is scheduled to meet today, June 3, to consider the approval of the disbursement. If granted, the funds are expected to hit Ghana’s reserves later in the month.
