IMF Warns Ghana Against Artificial Currency Control as Policy Institute Claims Vindication
The International Monetary Fund has cautioned Ghana’s government against artificially controlling the cedi’s stability, validating earlier warnings from a local economic research group.
The Institute of Economic and Research Policy Promotion (IERPP) says the IMF’s concerns vindicate its previous “red flag” warnings about Ghana’s currency management practices. The global financial institution raised these issues during its fourth review under Ghana’s Extended Credit Facility Arrangement.
The IMF’s Executive Board expressed specific concerns about the government’s methods of maintaining cedi stability during the latest assessment. This review forms part of ongoing monitoring under Ghana’s bailout program with the Washington-based lender.
IERPP officials claim they previously warned about potential risks in Ghana’s approach to currency stabilization before the IMF’s formal caution. The institute argues that artificial currency controls can create underlying economic distortions despite appearing to provide short-term stability.
Ghana secured an Extended Credit Facility from the IMF as part of broader economic reforms following fiscal challenges. The arrangement includes regular reviews where the IMF assesses the country’s progress on agreed economic targets and policies.
The timing of the IMF’s warning suggests growing international concern about Ghana’s monetary policy approach. Currency stability remains a critical issue for Ghana’s economy, affecting everything from inflation rates to import costs for essential goods.
The government has not yet responded publicly to the IMF’s latest concerns about cedi management practices.
