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BoG: Ghana’s Economic Stability Must Be Protected as IMF Programme Nears End

 Economic Stability, BoG

Second Deputy Governor of the Bank of Ghana, Matilda Asante-Asiedu, has declared that Ghana's economy has achieved significant stability following two years of difficult reforms but warned that sustaining those gains will require continued discipline from government, businesses and financial institutions.

Delivering the keynote address at The Money Summit 2026 in Accra, Asante-Asiedu said Ghana's economic recovery has been stronger and faster than many expected, with inflation, interest rates and borrowing costs all declining significantly while external reserves and economic growth continue to improve.

Speaking on the theme, "Building Trust, Capital and Stability for Ghana's Economic Future," she described the economy as stable but cautioned that global uncertainties, including geopolitical tensions and volatility in oil markets, remain potential threats.

Through discipline and no small measure of sacrifice, we have secured stability. That is the achievement of the past two years. But stability secured is different from stability sustained," she said.

According to the Deputy Governor, headline inflation has fallen dramatically from 23.8 percent at the end of 2024 to about 3.4 percent by April 2026, while food inflation has dropped from nearly 28 percent to just over 2 percent.

She noted that the improvement in inflation has enabled the Bank of Ghana to reduce the Monetary Policy Rate from 27 percent to 14 percent, contributing to lower borrowing costs for businesses and households.

Asante-Asiedu also highlighted improvements in the country's external position, revealing that Ghana's Gross International Reserves have increased from approximately US$9 billion to more than US$14 billion, supported largely by strong gold export earnings.

She said the country's current account remains in surplus, exchange rate management is being strengthened and economic growth is exceeding expectations.

To sum it all up, our economy is well and stable," she told participants.

The Deputy Governor said Ghana is now nearing the completion of its Extended Credit Facility programme with the International Monetary Fund (IMF) and is preparing to transition to a Policy Coordination Instrument (PCI), a non-financing arrangement focused on monitoring policy reforms rather than providing financial support.

She explained that the new arrangement would test Ghana's commitment to maintaining fiscal and monetary discipline without relying on external funding.

The Policy Coordination Instrument is no longer about borrowing; it is about monitoring our own reforms. Our credibility will now rest entirely on the quality and consistency of our own policies," she said.

Asante-Asiedu stressed that trust, capital and stability are interconnected pillars necessary for long-term economic prosperity.

She explained that trust in institutions reduces risk, lowers the cost of capital and encourages long-term investment, while macroeconomic stability provides the confidence businesses need to expand and create jobs.

The Deputy Governor acknowledged that private sector credit remains low at less than 10 percent of Gross Domestic Product and urged financial institutions and businesses to work together to improve access to financing.

Outlining the Bank of Ghana's priorities, she said the central bank would continue to focus on maintaining low inflation, strengthening foreign exchange reserves, ensuring stability in the foreign exchange market, improving banking sector resilience and mobilising long-term domestic capital for productive investment.

She disclosed that the Bank aims to increase reserve buffers to six months of import cover while advancing the Ghana Gold Reserve Accumulation Programme (GANRAP) toward a medium-term target equivalent to 15 months of import cover.

Asante-Asiedu also warned against speculative attacks on the cedi, arguing that recent market developments have demonstrated the strength of Ghana's economic fundamentals.

She noted that despite increased foreign exchange demand resulting from higher oil import costs linked to the US-Iran conflict, the cedi had remained resilient and reserves remained strong.

On the banking sector, she said ongoing recapitalisation efforts and measures to reduce non-performing loans are expected to improve credit flows to productive sectors such as agriculture, manufacturing and small businesses.

The Deputy Governor concluded by calling for collective responsibility in sustaining Ghana's economic recovery, insisting that maintaining stability cannot be left to the central bank alone.

She urged government, businesses, financial institutions and citizens to play their respective roles in protecting the gains achieved so far.

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