IMF lauds Ghana for Cedi stabilisation amid improved economic fundamentals and investor confidence

Washington, D.C., Oct. 17, GNA – The International Monetary Fund (IMF) has commended Ghana on the recent stabilisation of the Cedi, noting that the development reflects improvements in the country’s economic fundamentals, renewed policy credibility, and growing investor confidence.

Mr Abebe Aemro Selassie, Director of the IMF’s African Department, made the remarks during the October 2025 Regional Economic Outlook for Sub-Saharan Africa held in Washington, D.C., as part of the IMF/World Bank Annual Meetings.

“A couple of years ago, all the concern in Ghana was about uncontrolled depreciation. It’s generally good to see stabilisation returning to the economy… allowing the Cedi to stabilise and maybe even begin to appreciate,” he said, adding that such trends support competitiveness but warned against excessive appreciation.

Mr Selassie cautioned that over-appreciation of the exchange rate could negatively affect the Cedi and the broader economy, urging the Bank of Ghana to adopt a measured approach and reduce undue interference in the forex market. He explained that Ghana’s relatively shallow capital, foreign exchange, and money markets make the economy vulnerable to volatility, highlighting the need for careful calibration of policies to manage these risks.

In the first half of 2025, the Bank of Ghana injected US$3.4 billion into currency markets—US$1.4 billion in the first quarter and US$2 billion in the second quarter—to bolster the Cedi and strengthen external buffers.

Dr Johnson Asiama Pandit, Governor of the Bank of Ghana, said the interventions aimed to limit market volatility rather than over-support the markets, ensuring smooth dynamics and stability.

President John Dramani Mahama, during a media engagement in September in Accra, explained that the Central Bank’s interventions in the foreign exchange market were necessary to correct imbalances caused by the rapid appreciation of the Cedi. He noted that the Bank later withdrew interventions to ensure exporters could conduct business effectively while preventing importers from being overburdened by high foreign exchange costs.

The IMF’s endorsement underscores Ghana’s progress in stabilising its currency and the importance of continued prudent economic management to sustain investor confidence and support growth.