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IMF Urges Ghana To Strengthen Central Bank Independence

Story Highlights
  • IMF reiterated call for amendment of the Bank of Ghana Act
  • The move follows high exposure to government financing
  • IMF aims to strengthen Ghana's economic resilience

The International Monetary Fund (IMF) has reiterated its call for Ghana to prioritize the amendment of the Bank of Ghana Act to bolster the central bank’s independence.

The move comes in response to the bank’s high exposure to government financing.

While commending the Bank of Ghana’s efforts to maintain a tight monetary policy, the IMF has emphasized the need for further progress in addressing its safeguards assessment recommendations.

The Fund has also urged the central bank to rebuild its international reserves and implement reforms to its foreign exchange intervention framework.

To enhance exchange rate flexibility and deepen the foreign exchange market, the IMF recommends adopting a formal internal foreign exchange intervention policy framework, conducting all interventions through an open and price-based auction mechanism, and reforming the cedi reference rate.

The IMF’s recommendations aim to strengthen Ghana’s economic resilience and stability.

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