Director of the Institute of Statistical, Social and Economic Research (ISSER), Professor Peter Quartey, has expressed optimism that the recent $370 million disbursement to Ghana under the International Monetary Fund’s (IMF) fourth review will contribute significantly to stabilizing the Ghanaian cedi and bolstering investor confidence.
According to Professor Quartey, the inflow of foreign exchange from the IMF will strengthen the country’s dollar reserves, which will, in turn, cushion the local currency against potential depreciation pressures.
“Once we get a new flow from the IMF, that $370 million is going to boost our supply of foreign exchange. Even if there’s a surge in demand, this injection will help mitigate the effects and reduce any significant depreciation,” he explained.
He noted that while discussions continue around what the optimal depreciation rate should be, maintaining a stable rate around 10% annually would allow businesses and investors to plan effectively and confidently.
Professor Quartey believes the new disbursement is a positive signal to the market and a step forward in the country’s ongoing economic recovery efforts.
The funds are expected to help support fiscal consolidation and further implementation of structural reforms under Ghana’s IMF programme.
The IMF’s fourth review of Ghana’s extended credit facility was approved last week, unlocking the next tranche of financial support as the country works to restore macroeconomic stability.
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