The Bank of Ghana has reported that despite some delays in the disbursement of donor support, the country’s foreign exchange reserves have remained steady.
As of April 5, 2024, the reserves were estimated to be at $6.2 billion.
Governor Dr. Ernest Addison highlighted the bank’s commitment to implementing policies that have contributed to this stability. He mentioned the innovative Gold for Reserves program, which has played a significant role in the bank’s foreign exchange management strategies.
At a joint press conference with the International Monetary Fund and the Ministry of Finance on the Second Review of the Extended Credit Facility (ECF) Program, Dr. Addison also shared that the bank expects an end-year inflation rate of 15+/- 2%.
The Governor emphasized the progress made in implementing these policies, citing a significant drop in inflation from 54 percent in 2022 to 23% in 2023. He also noted the stability of the exchange rate throughout last year, supported by tighter monetary policy and stronger foreign exchange reserves.
Looking ahead, Dr. Addison acknowledged some slowdown in the pace of disinflation in the first quarter of 2024 due to various factors but expressed optimism for the process to resume in the second quarter and beyond. The bank’s expectation for end-year inflation remains unchanged at 15+/- 2%.
Additionally, the Bank of Ghana and the Ministry of Finance have reached an agreement on the recapitalization of the Central Bank, with discussions ongoing on external and domestic debt restructuring programs.
Overall, Dr. Addison stressed the importance of steadfast policy implementation, fiscal rectitude, tight monetary policy stance, and structural reforms to ensure the sustainability of the country’s economic progress. He also expressed the need for flexibility from the IMF to reflect changing dynamics in the Ghanaian economy.
The Governor affirmed the government and the Central Bank’s commitment to changing the narrative of successfully implementing IMF-supported programs in election years without derailment.
