Finance

IMF’s US$360million inflow is peanut compared with our FX needs

Following the International Monetary Fund’s (IMF) approval of the second review of the country’s Extended Credit Facility (ECF) arrangement, the Director of Research at the Institute of Economic Affairs (IEA), Dr. John Kwakye, has described the US$360 million received by government as peanut.

According to him, the third tranche — US$360 million — could not solve Ghana’s problems, looking at the country’s foreign exchange market.

In a post on X sighted by GhanaWeb Business, the IEA boss said the local economy will be put on a sound footing only if the government takes ownership of the country’s natural resources and rakes in more money to help stabilize the Cedi.

Dr. Kwakye stated categorically that this was the only sustainable way to prevent the Cedi from depreciating against major trading currencies — dollars and pounds sterling.

He said, “Relying on IMF disbursements to bolster the cedi isn’t sustainable. The US$360 mn inflow is peanuts compared with our FX needs. Taking ownership of our natural resource wealth to support the cedi is the only sustainable option.”

The disbursement of the third tranche of the IMF bailout package — US$360 million — brings the total disbursement to US$1.56 billion.

In a statement issued, the IMF said Ghana’s performance under the programme has been generally strong, with all quantitative performance criteria for the second review and almost all indicative targets met.

It said the country has made progress on its debt restructuring programme and key structural reforms were advancing.

To help stabilise the economy, the government, as part of measures to tame high inflation, announced on July 1, 2022, its decision to seek a $3 billion financial bailout programme from the International Monetary Fund (IMF).

Subsequently, a team from the IMF arrived in the country from July 6 to July 13, 2022, to engage with Ghanaian authorities for a possible economic support program.

A staff-level agreement between the Government of Ghana and the IMF was reached in December 2022.

On May 17, 2023, the IMF’s executive board approved Ghana’s $3 billion loan facility.

The first tranche of $600 million was received by the Bank of Ghana (BoG) on Friday, May 19, 2023.

The IMF programme, according to the government, is aimed at restoring macroeconomic stability and safeguarding debt sustainability, among many other objectives.

Read Dr Kwakye’s tweet below;

 

 

Source: www.ghanaweb.com

Ogyem Solomon

Solomon Ogyem – Media Entrepreneur | Journalist | Brand Ambassador Solomon Ogyem is a dynamic Ghanaian journalist and media entrepreneur currently based in South Africa. With a solid foundation in journalism, Solomon is a graduate of the OTEC School of Journalism and Communication Studies in Ghana and Oxbridge Academy in South Africa. He began his career as a reporter at OTEC 102.9 MHz in Kumasi, where he honed his skills in news reporting, community storytelling, and radio broadcasting. His passion for storytelling and dedication to the media industry led him to establish Press MltiMedia Company in South Africa—a growing platform committed to authentic African narratives and multimedia journalism. Solomon is the founder and owner of Thepressradio.com, a news portal focused on delivering credible, timely, and engaging stories across Ghana and Africa. He also owns Press Global Tickets, a service-driven venture in the travel and logistics space, providing reliable ticketing services. He previously owned two notable websites—Ghanaweb.mobi and ShowbizAfrica.net—both of which contributed to entertainment and socio-political discussions within Ghana’s digital space. With a diverse background in media, digital journalism, and business, Solomon Ogyem is dedicated to telling impactful African stories, empowering youth through media, and building cross-continental media partnerships.

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