Skip to main content

Scheduled exit from IMF programme, others could influence capital flows, exchange rate dynamics – BoG Governor

 


The Governor of the Bank of Ghana, Dr. Johnson Asiamah, has expressed worry about the implications of the scheduled exit from the IMF programme later this year and the uncertainties in the global environment.

According to him, this could pose challenges to capital flows and exchange rate dynamics.

Responding to questions from the media, he pointed out that the Central Bank will monitor and maintain vigilance in that regard.

As the Bank continues with its policy vigilance during the easing cycle and reserve build-up, we expect to maintain the earlier gains. We note that the scheduled exit from the IMF programme later this year and the uncertainties in the global environment could influence capital flows and exchange rate dynamics”.

“Against the above backdrop, the Bank’s [BoG] policy strategy emphasises caution and vigilance”, he added.

Inflation declined sharply and sustainably from 23.8% in December 2024 to 5.4% in December 2025, reflecting tight monetary conditions, improved fiscal coordination under the IMF programme, easing food supply pressures, and well-anchored inflation expectations.

The Governor said with headline inflation now firmly below the lower bound of the medium-term target, real policy rates remain highly restrictive. According to him, this provides space for additional rate cuts while still maintaining a sufficiently tight policy stance to safeguard price stability.

Labels:

Comments

Post a Comment

Popular posts from this blog

Fitch Solutions retains 2025 growth rate projection at 4.2%

 Fitch Solutions has reaffirmed its projection that Ghana’s economy will expand by 4.2% in 2025. This estimate slightly exceeds the International Monetary Fund’s forecast of 4% and the World Bank’s projection of 3.9%. The UK-based research firm attributes its outlook to historically high gold prices, which are expected to cushion the Ghanaian economy against a global slowdown triggered by rising tariffs. Higher gold prices are anticipated to strengthen government revenue, enhance foreign exchange earnings, and help sustain currency stability. The report also highlights that Ghana is relatively less vulnerable to increasing trade restrictions from the United States, given that its primary exports—gold and crude oil—are not directly affected by the tariffs introduced by President Trump’s administration. Moreover, the US constitutes only about 4% to 5% of Ghana’s total exports. In contrast, Ghana’s trade relations are more heavily oriented toward China and European countries, particul...
Post a Comment
Read more

BoG injects $20m into FX market to support 11 BDCs

  The Bank of Ghana (BoG) has injected $20 million into the foreign exchange market in the latest round of its forward FX auction targeted at Bulk Oil Distribution Companies (BDCs). The intervention, which benefited eleven BDCs, is part of the central bank’s broader strategy to stabilise the cedi and ensure price stability in the petroleum downstream sector. Held on Tuesday, April 29, the auction was priced at a locked exchange rate of GHS 14.28 to the US dollar, with bid offers ranging from GHS 13.85 to GHS 15.55. This move reflects the BoG’s continued effort to deepen forex liquidity and safeguard the domestic fuel supply chain against volatility in global energy markets. By directly supplying FX to BDCs, the central bank seeks to ease pressure on the interbank market, guarantee the uninterrupted flow of petroleum products, and mitigate the pass-through effects of exchange rate fluctuations on fuel prices. The $20 million disbursement forms part of a $120 million programme for th...
Post a Comment
Read more

Kenpong Travel & Tours Champions Breast Cancer Awareness During Customer Week

  As part of activities to mark Customer Week, Kenpong Travel & Tours, a leading travel agency in Ghana, is joining the global fight against breast cancer. October is Breast Cancer Awareness Month, and the company is passionate about spreading hope and support to those affected. At Kenpong Travel & Tours, we believe that travel and exploration can be therapeutic and empowering. That's why we're committed to supporting our customers and the broader community in the fight against breast cancer. We're proud to stand in solidarity with breast cancer warriors and survivors. At Kenpong Travel & Tours, we believe that everyone deserves a chance to explore the world and create unforgettable memories. Let's prioritize health, support one another, and fight against breast cancer," said Kennedy Agyapong, CEO of Kenpong Travel & Tours. Our efforts are focused on raising awareness, promoting early detection, and supporting those affected by breast cancer. We urg...
Post a Comment
Read more