The IMF Executive Board on July 7, 2025, concluded its fourth review of Ghana’s ongoing 18^th  IMF programme, which began in May 2023. Completion of the review unlocks a new disbursement of $367 million, bringing the total support under the programme to $2.3 billion.

This is a positive development for the Ghanaian cedi. The injection of $367 million into the economy will boost foreign exchange reserves and support the local currency.

However, the IMF is urging the Bank of Ghana to reduce its interventions in the foreign exchange market.

In its post-review statement, IMF’s Deputy Managing Director Bo Li urged the central bank to “reduce its footprint in the foreign exchange market” and to “allow for greater exchange rate flexibility.”

He also encouraged the adoption of a formal FX intervention policy framework to guide market operations and improve transparency.

This comes at a time when the cedi has posted significant gains.

The currency, which began 2025 at 14.7 to the dollar, is now trading at 10.39, according to Bloomberg. The IMF’s call suggests that this appreciation may be partly the result of heightened Bank of Ghana interventions.

The press release did not provide exact details of the Bank’s market activity. However, the IMF acknowledged that higher gold export earnings, rising remittances, and to a lesser extent, oil revenues have all contributed to the cedi’s recent stability and strength.

The Fund is now calling for a more rules-based approach to foreign exchange operations. It wants the central bank to adopt a formal FX intervention framework to increase transparency, limit discretion, and anchor market expectations.

The full IMF report on Ghana’s fourth review is expected in the coming days. It will provide more detail on the Bank of Ghana’s role in stabilising the cedi and why the IMF believes its footprint should be reduced.

Until then, the question remains whether the cedi’s rally has been driven more by fundamentals or by the invisible hand of the central bank.