Former Vice President and New Patriotic Party (NPP) presidential candidate, Dr Mahamudu Bawumia, has disclosed what he describes as a “hidden” condition under Ghana’s International Monetary Fund (IMF) programme that limited the country’s ability to intervene in the foreign exchange market.
According to Dr Bawumia, the IMF programme imposed a ceiling of US$80 million per month on Ghana’s foreign exchange interventions. He said the restriction affected the extent to which the Bank of Ghana could use foreign exchange resources to influence conditions in the forex market.
Bawumia made the revelation while discussing Ghana’s economic management and the performance of the cedi under the IMF-supported programme.
He argued that the restriction was significant because foreign exchange intervention is one of the tools available to a central bank when dealing with excessive volatility or pressures in the currency market.
Under such interventions, a central bank can supply foreign currency to the market when demand for dollars and other foreign currencies rises sharply. The objective can include helping to reduce disorderly market conditions and supporting broader monetary and financial stability.
Bawumia claimed that Ghana’s intervention was therefore constrained by the US$80 million monthly limit during the period in question.
He further stated that restrictions affecting the foreign exchange market were subsequently removed in 2025.
The former Vice President’s comments have renewed discussion about the role of the IMF programme in Ghana’s economic policies, particularly in relation to the management of the cedi and the country’s foreign exchange reserves.
Ghana entered an IMF-supported programme as the country faced serious economic challenges, including high inflation, debt pressures, limited foreign exchange liquidity and significant depreciation of the cedi.
The programme has involved a number of fiscal and monetary reforms aimed at restoring macroeconomic stability and strengthening Ghana’s financial position.
Bawumia’s latest comments focus specifically on the foreign exchange component of those reforms. He suggested that the conditions attached to the programme had implications for how much the country’s central bank could intervene in the market.
He also questioned the broader effects of restrictions on the Bank of Ghana’s ability to respond to movements in the foreign exchange market.
The former Vice President’s comments come amid continuing public debate over Ghana’s currency performance and the policies required to maintain stability.
The cedi remains an important indicator of economic conditions because movements in its value can affect the cost of imported goods, businesses that rely on foreign currency and the government’s external obligations.
Foreign exchange management is therefore closely watched by investors, businesses and households.
Bawumia’s disclosure has also raised questions about the extent to which IMF conditions influenced monetary policy decisions during the previous administration and the subsequent changes made in 2025.
However, the claims are part of Bawumia’s assessment of the IMF programme and Ghana’s foreign exchange policy, and further details from the relevant institutions would be required to provide a complete picture of the conditions and their implementation.
The discussion also highlights the delicate balance between protecting foreign exchange reserves and intervening in the market to address currency pressures.
While intervention can provide temporary support during periods of volatility, excessive use of reserves can weaken a country’s external buffers. IMF-supported programmes often place emphasis on rebuilding reserves and maintaining sustainable macroeconomic policies.
For Ghana, the management of foreign exchange remains a major part of the broader effort to strengthen the economy and restore confidence in the cedi.
Bawumia’s comments have consequently added another dimension to the debate over the country’s IMF programme, particularly regarding how the programme affected the Bank of Ghana’s ability to intervene in the foreign exchange market.
As discussions about Ghana’s economic direction continue, the details surrounding the reported US$80 million monthly ceiling and the subsequent removal of restrictions are likely to remain subjects of interest among economists, policymakers and other stakeholders.
Source: Thepressradio.com
