IMF staff-level deal could unlock $385m for Ghana

Ghana has reached a staff‑level agreement with the International Monetary Fund (IMF) on the fifth review of its $3bn Extended Credit Facility. If the IMF Executive Board approves the review, Ghana would receive about $385 million in the next tranche to support the budget and reserves. The IMF cited easing inflation and policy progress, while noting ongoing reforms around foreign‑exchange operations and fiscal consolidation.

Why it matters

The agreement, once approved, would extend Ghana’s external financing cushion at a time the Bank of Ghana (BoG) is easing rates amid disinflation. The IMF said the BoG has cut the policy rate by 650 basis points to 21.5% as inflation moves back toward target. The BoG’s dashboard currently shows a 21.5% policy rate and a 9.4% latest inflation print, underscoring the improved price backdrop compared with 2023 highs.

Background

Ghana entered the IMF programme in May 2023 after a sharp balance‑of‑payments strain, a domestic debt exchange and cedi volatility. Since then, authorities have focused on rebuilding buffers, tightening fiscal discipline and repairing the financial sector. The staff‑level deal is the fifth review under the programme; previous reviews unlocked multiple disbursements tied to quantitative targets and structural reforms. The IMF now highlights a structured FX operations framework to smooth volatility and reserve build‑up—important given Ghana’s import needs and exposure to commodity swings.

What to watch

• IMF Board date and any fresh conditions attached to the disbursement.
• The 2026 budget cycle signals on wages, arrears and state‑owned enterprise reforms.
• Further BoG rate moves if disinflation persists toward the 8% ±2 target band.

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Source: raylizaghana.com