By Francis Kobena Tandoh
With the International Monetary Fund (IMF) set to release 370 million U.S. dollars to the Ghanaian government later this month, the Ghanaian cedi is expected to either maintain its relative stability or appreciate further against major trading currencies.
The disbursement, which marks the fifth tranche under Ghana’s 3 billion U.S. dollar Extended Credit Facility (ECF), is subject to the approval of the IMF Executive Board when it convenes on June 3.
Following a successful fourth review of Ghana’s economic reform programme in April, the disbursement of the fifth tranche would bring total disbursements received under the programme to 2.24 billion U.S. dollars.
Bank of Ghana Governor (BoG), Dr. Johnson Pandit Asiama, has observed that 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 370 million U.S. dollars, and not only that, the World Bank also stands to make some disbursements. So those monies will come in and certainly build our reserves further, but that will be somewhere in June”, said Asiama.
The IMF Executive Board in May 2023 approved an SDR 2.242 billion (about US$3 billion) 36-month ECF arrangement for Ghana. This decision enabled an immediate disbursement equivalent to SDR 451.4 million (about US$600 million).
The authorities’ economic programme, supported by the ECF arrangement, builds on the government’s Post COVID-19 Programme for Economic Growth (PC-PEG), which aims to restore macroeconomic stability and debt sustainability and includes wide-ranging reforms to build resilience and lay the foundation for stronger and more inclusive growth.
Securing timely debt restructuring agreements with external creditors was quite essential for the successful implementation of the new ECF arrangement. Enditem
Source: Ghana Eye Report
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