Cedi’s Strong Appreciation May Trigger IMF Programme Revision – IMF Hints
The International Monetary Fund (IMF) has indicated that the sharp appreciation of the Ghanaian cedi against the US dollar in the first half of 2025 may necessitate a revision of some targets under its support programme with Ghana.
Speaking at a press conference in Washington DC, IMF Director of Communications, Julie Kozack, disclosed that the Fund will review all macroeconomic and financial developments, including recent exchange rate dynamics, during future programme assessments.
“As we look at the programme, we look at all of these developments, including, of course, developments in the exchange rate,” Ms Kozack stated.
She further noted that upcoming reviews will evaluate the impact of exchange rate movements to ensure that the programme’s targets and objectives remain realistic and aligned with evolving conditions.
Programme Targets Under Review
Ghana’s three-year IMF-backed programme under the $3 billion Extended Credit Facility (ECF) aims to:
• Restore macroeconomic stability,
• Ensure debt sustainability, and
• Lay the foundations for inclusive and sustained economic growth.
A key component of the programme is the reduction of Ghana’s public debt to 55 percent of GDP by 2028. Recent data from the Bank of Ghana suggests the country is already meeting this benchmark. As at end-April 2025, the debt-to-GDP ratio had declined significantly to 55 percent — a development largely attributed to the cedi’s robust performance this year.
Commercial bank data indicates that the cedi has appreciated by over 40 percent against the US dollar since the beginning of 2025. The local currency is currently trading at GH¢10.26 to a dollar, compared to over GH¢17 at the end of 2024.
President John Mahama, addressing a session of the African Development Bank meetings in Abidjan, disclosed that the cedi’s appreciation has led to a GH¢150 billion reduction in Ghana’s total debt stock. He further stated that the real exchange rate range for the cedi currently lies between GH¢10 and GH¢12 to the US dollar.
Strong Reserve Position
Ghana has also surpassed its target for gross international reserves. According to the Bank of Ghana, as of end-April 2025, reserves stood at GH¢10.6 billion — representing 4.7 months of import cover, well above the IMF’s stipulated threshold.
Next IMF Board Meeting
Meanwhile, Ms Kozack announced that the IMF Executive Board is scheduled to convene in the first week of July 2025 to assess Ghana’s programme progress. Upon successful review and Board approval, Ghana is expected to receive a disbursement of $370 million. This would bring the total support received under the ECF to $2.4 billion since the programme’s inception in May 2023.
President Mahama has already hinted that Ghana will not seek an extension of the IMF programme when it concludes in May 2026, signalling a strong confidence in the country’s post-programme economic trajectory.
