Professor Eliplimi Agbloyor, an Associate Professor at the University of Ghana Business School (UGBS), has raised concerns over the adequacy of the $360 million extended to Ghana by the International Monetary Fund (IMF). In an interview with the Ghana News Agency (GNA), Professor Agbloyor emphasized that this amount was insufficient to address the growing demand for dollars in the Ghanaian economy.
According to Professor Agbloyor, Ghana's current reserve level, equivalent to a 1.7-month import cover, falls dangerously short of the recommended minimum of 12 months. He stressed the importance of bolstering external reserves to enable the country to withstand global economic shocks effectively. Drawing parallels with the COVID-19 era, he noted that countries with higher reserves fared better during the crisis than those with lower reserves.
To address this shortfall, Professor Agbloyor urged the Ghanaian government to implement appropriate domestic policies aimed at improving the extent of the country's reserves. Such policies, he argued, would be crucial for safeguarding Ghana's economic stability and resilience in the face of external challenges.
Meanwhile, Ghana anticipates approval for its third tranche of US$360 million from the IMF when the Executive Board convenes in June. Dr. Ernest Addison, Governor of the Bank of Ghana, expressed optimism about the Board's approval during a press briefing in Accra. He highlighted that this additional funding would bolster Ghana's foreign reserves, which stood at US$6.2 billion as of April 5, 2024, and support the objectives of the US$3 billion loan support program.
Dr. Theo Acheampong, an economist and political risk analyst, underscored the importance of domestic gold purchases by the Bank of Ghana in strengthening Ghana's reserves and currency. Such measures, he suggested, could contribute significantly to enhancing the country's economic stability and financial resilience.
