Audio By Carbonatix
The International Monetary Fund (IMF) has revealed that the cedi’s sharp appreciation against the US dollar in the first half of 2025 could lead to a revision of some of the fund’s programme targets with Ghana.
The IMF noted that future programme reviews will provide an opportunity for the team to carefully assess all of the evolving macroeconomic and financial conditions.
The Director of Communications at the IMF Julie Kozack disclosed this in response to a question posed by JOYBUSINESS during a press conference in Washington DC USA.
“As we look at the programme, we look at all of these developments, including, of course, developments in the exchange rate”, she said.
She added that the reviews will include the exchange rate movements to ensure that the programme's targets and objectives remain appropriate and achievable.
IMF Programme targets
Ghana’s economic programme, supported by the External Credit Facility arrangement has three key objectives: restoring macroeconomic stability, ensuring debt sustainability, and laying the foundations for higher and more inclusive growth.
One of them, include, reducing Ghana’s Debts to sustainable levels by 2028.
This means that at the end of 2028, Ghana’s Debt to GDP ratio must reduce to 55 percent.
The latest data released by the Bank of Ghana showed that ending April 2025, Ghana’s Debt to GDP ratio has reduced substantially to 55 percent.
This is as a result of the cedi’s sharp appreciation against the dollar this year. Data from commercial banks showed that the cedi appreciated by more than 40 percent against the dollar since the beginning of 2025.
Data from the Bank of Ghana shows that the cedi is currently selling GH¢10.26 to a dollar.
President John Mahama during a recent engagement at the African Development Bank in Ivory Coast revealed that the Ghana’s total debt stock has been reduced by GH¢150 billion as a result of the cedi’s appreciation against the US dollar.
The President in a separate engagement disclosed that the real exchange rate value of the cedi against the dollar is in the range of GH¢10 to GH¢12.
Ghana has also met the target set by the IMF for the country’s international reserves.
Ghana’s international reserves ending April 2025 stood at GH¢10.6 billion.
This represent 4.7 months of import cover, way higher than the target set by the IMF before the completion date of the programme.
IMF Board meeting on Ghana’s programme
Madam Kozack also announced that the IMF Executive Board is expected to meet in the first week in July 2025.
She revealed that upon approval by the Executive Board, “Ghana would be scheduled to receive about U.S. $370 million, bringing total support under the External Credit Facility to $2.4 billion since May of 2023”.
President John recently announced that Ghana will not extend the programme with the IMF when it completes in May 2026.
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