Washington: The International Monetary Fund (IMF) has lauded Ghana on the recent stabilisation of the Cedi, noting that the development signals improvements in the country's economic fundamentals, renewed policy credibility, and investor confidence.
According to Ghana News Agency, Mr. Abebe Aemro Selassie, Director of the African Department at the IMF, made these remarks during the October 2025 Regional Economic Outlook for Sub-Saharan Africa in Washington, D.C, as part of the IMF/World Bank Annual Meetings. He reflected on past concerns of uncontrolled depreciation in Ghana but acknowledged the current stabilisation as a positive sign for the economy. He highlighted the importance of competitiveness and cautioned against excessive appreciation that could negatively impact the Cedi and the broader economy.
Mr. Selassie advised that Ghana's relatively shallow capital, foreign exchange, and money markets expose it to volatility, which could disrupt the economy. He emphasized the need for a balanced approach in managing the forex market. He stated that excessive interference could lead to economic issues and stressed the importance of calibrating policies to manage flaws in the system.
In the first half of 2025, the Bank of Ghana injected significant funds into the currency markets, with US$1.4 billion in the first quarter and an additional US$2 billion in the second quarter, aiding in the appreciation of the Cedi and strengthening the country's external buffers. Dr. Johnson Asiama Pandit, Governor of the Bank of Ghana, defended these interventions, stating they were necessary to prevent market collapse and ensure smooth market dynamics.
President John Dramani Mahama, during a media engagement in Accra, supported the Central Bank's actions, explaining that interventions were required to correct imbalances caused by the rapid appreciation of the Cedi. He noted that the situation was challenging for exporters and emphasized the need for balanced market conditions to support both exporters and importers.
