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

The cedi is expected to remain stable in the coming weeks. This stability is due to a $370 million release from the International Monetary Fund (IMF). The funds will be disbursed later this month.

This disbursement is the fifth tranche of Ghana’s $3 billion Extended Credit Facility. It requires approval from the IMF Executive Board on June 3. The fourth review of Ghana’s economic reform program was successful in April. This will bring total disbursements under the program to $2.24 billion.

Bank of Ghana Governor, Dr. Johnson Asiama, commented on the expected inflows. He noted that these funds, along with additional financing from the World Bank, will help strengthen foreign reserves. This will support exchange rate stability and boost confidence in the economy.

He stated, “We are expecting the $370 million and also some disbursement from the World Bank.” These funds are anticipated to arrive in June and will further build reserves.

The IMF program has been vital for Ghana’s recovery after recent crises. It provides financial and technical support for fiscal consolidation and structural reforms. The projected inflows may ease foreign exchange pressures and reduce imported inflation as mid-year economic activities begin.