Investor confidence at risk if IMF approval fails – Warns Fitch Solutions
Fitch Solutions predicts International Monetary Fund (IMF) Board approval for Ghana’s program in Q1 2023.
The country’s progress on the Domestic Debt Exchange Program is seen as a key factor for the $3 billion Balance of Payment support from the IMF.
If the approval fails to happen, investor confidence is expected to remain weak, leading to a further depreciation of the currency, higher inflation, and a weaker growth rate than projected.
Fitch Solutions believes an IMF deal would improve Ghana’s external and fiscal positions, restore investor sentiment, and ease pressure on the exchange rate.
The government is expected to make greater progress on fiscal reforms under an IMF program.
