Cedi to gain as Ghana awaits $370m IMF tranche to boost reserves

The cedi is expected to maintain its relative stability in the coming weeks, buoyed by the anticipated release of $370 million from the International Monetary Fund (IMF) later this month.

The disbursement, which marks the fifth tranche under Ghana’s $3 billion Extended Credit Facility, is subject to the approval of the IMF Executive Board when it convenes on June 3.

This follows a successful fourth review of Ghana’s economic reform programme in April and would bring total disbursements received under the programme to $2.24 billion.

Bank of Ghana Governor, Dr. Johnson Asiama, says the expected inflows alongside additional financing from the World Bank will help bolster the country’s foreign reserves, further anchor exchange rate stability and reinforce confidence in the broader economy.

“As you are aware, this money is released after [approval] by the IMF Board. We are expecting the $370m 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”, he said.

The IMF programme has been crucial in Ghana’s post-crisis economic recovery efforts.

It has provided both financial and technical support as the country implements fiscal consolidation, structural reforms and debt sustainability measures.

The projected inflows could provide short-term relief to foreign exchange pressures and help moderate imported inflation, particularly as the mid-year economic cycle begins.