The International Monetary Fund (IMF) has advised the Bank of Ghana (BoG) to reduce its foreign exchange interventions and adopt a more transparent, rules-based approach to currency management.
This call comes as the Ghanaian cedi has appreciated significantly, sparking concerns about the sustainability of the gains.
In a post-review statement following the completion of Ghana’s fourth programme assessment under the $3 billion Extended Credit Facility (ECF), IMF Deputy Managing Director Bo Li called on the BoG to “reduce its footprint in the foreign exchange market” and “allow for greater exchange rate flexibility.”
He further urged the central bank to adopt a formal foreign exchange (FX) intervention policy framework to guide its operations and enhance market transparency.
The IMF’s caution signals a need for greater clarity in the BoG’s management of the currency market.
The cedi, which opened 2025 trading at GH₵14.7 to the dollar, has since appreciated to GH₵10.39.
Last week, the Cedi depreciated against the US Dollar by 0.10%, ending the week at GH₵10.3200 per Dollar, with a year-to-date appreciation of 42.44%.
The Cedi appreciated by 0.43% against the British pound, closing the week at GH₵14.0879, with a year-to-date appreciation of 30.61%.
The Cedi also depreciated against the Euro by 0.48% to settle at GH₵12.1259, with a year-to-date appreciation of 25.47%, based on Bank of Ghana’s interbank midrates.
Indicative rates from the open market showed the Cedi closing at midrate GH₵10.48 to the Dollar, GH₵14.38 against the British Pound and GH₵12.36 to the Euro.
While this trend has eased inflationary pressures and bolstered import affordability, the Fund’s recommendation suggests the appreciation may be unsustainable without a clearly defined FX policy to anchor market expectations.