Home - IMF backs gold sector reforms, urges Ghana to rebuild foreign reserves

The International Monetary Fund (IMF) has urged Ghana to sustain its ongoing gold sector reforms and allow greater exchange rate flexibility to rebuild the country's declining foreign exchange reserves.

The Fund said Ghana's performance under the Programme for Creditors and Investment (PCI) had been broadly satisfactory, with most quantitative targets for the review period achieved.

However, it noted that the decline in foreign exchange reserves in recent months had prompted the authorities to introduce corrective measures to address the situation.

These include transferring foreign exchange intermediation from the Bank of Ghana (BoG) to the Ghana Gold Board (GoldBod) and implementing the increased gold sale requirement for large-scale mining companies.

According to the IMF, consistent implementation of these measures, alongside greater flexibility in the exchange rate, would be critical to rebuilding the country's reserves in line with programme objectives.

“Steadfast implementation of these measures, alongside greater exchange rate flexibility, will be essential to rebuild reserves in line with program objectives,” the Fund stated.

The IMF's assessment indicates the importance of the government's gold sector interventions and broader foreign exchange management measures in strengthening Ghana's external position.

The Fund also stressed that maintaining the gains made under the programme would require continued commitment to the agreed policy measures.

MA