The International Monetary Fund (IMF) has advised the Ghanaian government to bolster the Bank of Ghana’s balance sheet and adopt a prudent monetary policy to anchor inflation expectations, following a recent mission visit. The call emphasizes strengthening the central bank’s financial health to mitigate fiscal risks and enhance monetary policy effectiveness.
Context of IMF Recommendations
The IMF mission, which concluded on May 15, 2026, evaluated Ghana’s economic performance and policy trajectory. Their recommendations stem from observations regarding the central bank’s financial standing and the broader economic environment.
Addressing Quasi-Fiscal Risks
A key concern highlighted by the IMF relates to losses incurred through the Domestic Gold Purchase Programme (DGPP). The Fund stated that these losses underscore the necessity of increased transparency and a reduction in quasi-fiscal activities. Such activities can weaken the central bank’s balance sheet, impacting its operational independence and financial stability.
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