Ghana's International Reserves Set to Surge with Nearly $2 Billion Inflows

Ghana’s international reserves are set to receive a significant boost as the government anticipates nearly $2 billion from its development partners by the end of this year, revealed Finance Minister Ken Ofori Atta in an exclusive interview with the Graphic Business.

This anticipated financial injection is expected to invigorate various sectors, particularly the business community, and could positively influence the local currency, which has been experiencing a weakening trend against major foreign currencies, notably the United States dollar, since the start of the year.

The government has already received the second installment of $600 million from the International Monetary Fund (IMF).

Last week, the World Bank announced the approval of the initial installment of $300 million out of a three-year budget support facility totaling $900 million.

The IMF is slated to conduct two additional reviews of its program with the country, with each review expected to unlock approximately $360 million.

Furthermore, the World Bank is poised to disburse approximately $250 million to operationalize the Ghana Financial Stability Fund, a special fund established by the government to aid banks in the country that were significantly affected by the implementation of the Domestic Debt Exchange Programme (DDEP) last year.

The African Development Bank is also expected to provide support with a $50 million facility.

With these anticipated inflows, along with funds from the $800 million cocoa loan, it is expected to provide a substantial uplift to the local currency.

Elaborating on the World Bank facility, Mr. Ofori-Atta stated that following the approval of the $300 million World Bank funds, the government is now awaiting ratification by Parliament to facilitate the disbursement.

He expressed confidence in the government's ability to successfully navigate through the two IMF reviews, enabling the release of the third and fourth tranches of the bailout funds.

“This year presents a unique opportunity with significant foreign inflows. Although these were anticipated last year, they didn’t materialize. However, this year, we have secured $600 million from the IMF, $300 million from the World Bank, and with the expected reviews unlocking additional funds, along with the cocoa loan and AfDB's $50 million, it paints a promising economic outlook,” remarked the finance minister, reflecting optimism for the year ahead.