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BoG reports steady foreign exchange reserves amid donor support delays
Ghana’s foreign exchange reserves have proven resilient, standing at an estimated $6.2 billion as of April 5, 2024, despite delays in the disbursement of some donor support, according to the Bank of Ghana.
Speaking at a joint press conference with the International Monetary Fund (IMF) and the Ministry of Finance on the Second Review of the Extended Credit Facility (ECF) Programme, Dr. Ernest Addison, Governor of the Bank of Ghana, lauded the country’s innovative Gold for Reserves programme. He described it as a “game changer” in the nation’s foreign exchange management strategies.
The Bank of Ghana, he noted, remains steadfast in its commitment to policies that have ensured the recovery of the economy and improved the nation’s macroeconomic indicators such as inflation.
“We have shown steadfast commitment to a set of policies right from the beginning under very difficult circumstances and we have reached a stage where programme implementation is progressing well. We completed the first review of the ECF programme in the latter part of last year and today we are on the verge of completing the second review with steadfast implementation of our policy measures”.
“With substantial progress in these measures, we are beginning to reap substantial macroeconomic dividends. Inflation has dropped significantly from a peak of 54 percent at the end of 2022 to 23% in 2023. The exchange rate remained relatively stable throughout last year, supported by tighter monetary policy and stronger foreign exchange reserves. Economic growth surprised on the upside”, he mentioned.
“During the first quarter of this year, this progress has continued although we have witnessed some slowdown in the pace of disinflation primarily due to a variety of factors including adverse base drift effects. The expectation however is for the disinflation process to resume in the second quarter of 2024 and beyond driven by continued maintenance of a tight monetary policy stance. Our expectation for end-year inflation of 15+/- 2% remains unchanged”, he noted.
