Ghana’s currency in crisis — IMF and IERPP declare BoG’s FX Policy a national threat

The Institute of Economic Research and Policy Promotion (IERPP) has welcomed the International Monetary Fund’s recent caution to the Bank of Ghana (BoG) regarding its heavy foreign exchange (FX) market interventions, stating the warning echoes its earlier concerns about the artificial stabilization of the Cedi.

In its fourth review under Ghana’s Extended Credit Facility, the IMF criticized the government’s approach, urging the BoG to step back from direct interventions and instead adopt a transparent, rules-based FX framework.

“The Bank of Ghana should maintain an appropriately tight monetary stance until inflation returns to its target, reduce its footprint in the foreign exchange market, and allow for greater exchange rate flexibility,” the IMF noted.

Responding to the IMF’s statement, IERPP said its own warnings had been overlooked by policymakers despite being in alignment with global economic guidance.

“These warnings from the IMF did not validate but vindicate what the Institute for Economic Research and Policy Promotion (IERPP) echoed,” stated the Institute in a release signed by its Executive Director, Prof. Isaac Boadi.

IERPP highlighted that BoG’s continued injection of dollars into the market may offer temporary relief but distorts fundamental market signals, suppresses local production, and encourages cheap imports—all detrimental to long-term economic sustainability.

The institute also criticized BoG for failing to establish a transparent and consistent FX policy, calling its actions “ad hoc and opaque.” According to the IERPP, this approach has led to speculation, market uncertainty, and a loss of confidence among investors and local businesses.

“The aggressive dollar sales, particularly during sensitive periods, only mask deeper economic weaknesses,” the statement added. “Unfortunately, both the IMF and IERPP’s advice appears to have been disregarded.”

IERPP reiterated its call for fiscal discipline, market-driven currency policies, and greater transparency from the central bank to ensure sustainable economic recovery.

Gabriel Nana Asirifi

Investigative Journalist & News Editor:

Contact: Editor@wesleyannews.com