$370Mn IMF Cash: A Major Confidence Booster for Ghana’s Cedi & Investors – Economist Confirms

Ghana’s local currency, the cedi, is poised for a significant boost following the International Monetary Fund (IMF)’s Executive Board approval of the fourth review of Ghana’s bailout programme.

The latest approval of the IMF board has unlocked a fresh $370 million disbursement for the country.

Following the approval, economist and director of ISSER, Prof. Peter Quartey, says the inflow will serve as a critical cushion in stabilising the cedi, even in the face of rising demand for foreign exchange in the market.

He also confirms that the development is a major signal to the market, which can boost the confidence of investors in Ghana’s economy.

“It’s a demand and supply thing. I mean, once we get a new flow from the IMF, that is $370 million, which is going to boost our supply of dollars. And certainly, even if there is a surge in demand, this can go a long way to minimise the effect of that surge to reduce any potential depreciation in the currency,” Prof. Quartey noted in an interview with JoyNews.

He continued, “So the cedi will remain stable. It is certainly going to boost confidence in the economy, going to help stabilise the exchange rate.

In recent months, there have been growing concerns over how the latest strength of the local currency will be maintained in the face of vulnerability to external pressures, especially with rising import bills, debt service obligations, and foreign investor exits.

But with this new IMF injection, the foreign exchange supply side gets a welcome push, helping to neutralize speculative pressures and narrow the gap between demand and supply.

Beyond immediate FX support, the IMF’s stamp of approval reassures investors, traders, and the international community that Ghana is staying the course with its economic reforms.

This renewed confidence can lead to further inflows not just from multilateral institutions but also from private investors who’ve been sitting on the fence.

Currency traders and market watchers also expect the Bank of Ghana to take advantage of this dollar inflow to support the cedi through strategic interventions, should the need arise.

This is the fourth successful review under Ghana’s $3 billion Extended Credit Facility (ECF) programme with the IMF. Each review milestone brings both resources and reputation, and in currency markets, reputation counts as much as reserves.

The $370 million boost is expected to strengthen its import cover, support budget execution, and ease pressure on the balance of payments, all of which play into keeping the cedi more resilient in the coming months.

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