BoG Pledges Coordinated Monetary-Fiscal Strategy With MoF for Sustainable Economic Growth
Governor of the Bank of Ghana (BoG), Dr Ernest Addison, speaking at a joint press conference marking the end of the third review of Ghana’s Extended Credit Facility (ECF) for 2023-2026 and a Staff-Level Agreement with the IMF, reaffirmed the central bank’s commitment to a coordinated monetary-fiscal policy approach in collaboration with the Ministry of Finance.
The strategy, he noted, aims to promote sustainable economic growth while maintaining macroeconomic stability.
Dr. Addison emphasized that the BoG would remain focused on building foreign exchange reserves, targeting a minimum of three months’ import cover. This effort, he noted, is supported by a robust external sector, bolstered by stronger gold production, higher remittances, and rising confidence in Ghana’s economic outlook.
The central bank will also preserve exchange rate flexibility, a critical tool in managing the foreign exchange market and cushioning against external shocks.
“We are committed to exchange rate flexibility to help mitigate the impact of external shocks (sic),” he added.
Concluding his remarks, Dr. Addison stressed that the BoG will continue to closely monitor emerging risks, adjusting policies as necessary to ensure the country’s price and financial stability.
“We remain vigilant in safeguarding our stability mandate and will ensure that we outperform the programme targets (sic),” he noted, underscoring the bank’s proactive approach to managing risks.
An International Monetary Fund (IMF) team, led by Mission Chief for Ghana, Stéphane Roudet, has successfully reached a Staff-Level Agreement on the third review of the Extended Credit Facility with Ghana.
This agreement follows a series of meetings held in Accra from September 24 to October 4, 2024, where discussions focused on progress in reforms and the government’s policy priorities.
In a statement, Mr Roudet stated, “The IMF staff and Ghanaian authorities have reached a staff-level agreement on the third review of Ghana’s economic program under the Extended Credit Facility arrangement. This agreement is subject to IMF Management approval and Executive Board consideration. Upon completion of the Executive Board review, Ghana would have access to SDR 269.1 million (approximately US$360 million), bringing the total IMF financial support disbursed under the arrangement since May 2023 to SDR 1,441 million (about US$1,920 million).”
