Ghana’s remarkable cedi appreciation and improved economic performance in 2025 are prompting the International Monetary Fund (IMF) to consider revising key targets under its $3 billion economic reform programme with the country.
The cedi has strengthened by more than 40% against the US dollar since the beginning of the year, helping Ghana meet its 2028 debt-to-GDP target three years early.
As a result, the IMF has indicated that certain programme parameters — including debt sustainability and international reserves thresholds — may need to be reassessed to reflect the new macroeconomic landscape.
“As we look at the programme, we look at all of these developments, including, of course, developments in the exchange rate,” said IMF Director of Communications, Julie Kozack, during a press briefing in Washington, D.C.
She emphasized that exchange rate movements will be carefully evaluated in the Fund’s next review to ensure Ghana’s programme goals remain both appropriate and achievable.
Ghana exceeds debt and reserves targets
At the heart of the IMF-supported Extended Credit Facility programme are three key goals: restoring macroeconomic stability, achieving long-term debt sustainability, and establishing a foundation for inclusive growth.
One of the programme’s primary benchmarks is to reduce Ghana’s public debt to 55% of GDP by 2028.
However, fresh data from the Bank of Ghana shows the country has already hit that target as of April 2025 — a full three years ahead of schedule.
The early attainment of this milestone has been driven largely by the dramatic appreciation of the cedi, which has reduced the cedi-equivalent of external debt and improved Ghana’s debt profile.
“The appreciation of the currency has significantly lowered our debt stock,” a senior official at the Ministry of Finance said. “Our nominal debt has dropped by nearly GH¢150 billion as a direct consequence.”
Cedi posts over 40% gain against Dollar
The Ghanaian cedi’s rally has been one of the strongest in emerging markets so far in 2025.
Commercial banks and the Bank of Ghana confirm that the cedi was trading at GH¢10.26 per dollar by early June 2025, compared to GH¢14.7 at the close of 2024.
Currency analysts attribute this surge to a combination of factors including strong remittance inflows, increased gold and oil export earnings, improved investor confidence, and robust Central Bank interventions.
Banking sector insiders also point to the effects of Ghana’s successful domestic debt restructuring and the ongoing IMF programme, which have shored up market credibility.
Foreign reserves hit GH¢10.6 billion
Another target Ghana has surpassed is the build-up of international reserves.
to the IMF and Bank of Ghana, the country’s gross international reserves stood at GH¢10.6 billion by the end of April 2025, representing 4.7 months of import cover — well above the IMF programme threshold.
This surge in reserves reflects stronger export earnings, effective monetary policy, and continued IMF disbursements under the Extended Credit Facility.
Julie Kozack confirmed that the IMF Executive Board will convene in the first week of July to assess Ghana’s economic performance and determine the disbursement of the next tranche of support.
“Upon approval by the Executive Board, Ghana would be scheduled to receive about $370 million, bringing total support under the External Credit Facility to $2.4 billion since May 2023,” she stated.
IMF May Recalibrate Programme Objectives
The IMF’s upcoming review will likely feature a recalibration of benchmarks to reflect Ghana’s stronger-than-expected macroeconomic performance.
Kozack emphasized that this is a standard procedure in Fund-supported programmes when developments on the ground shift substantially.
“Ghana’s progress is impressive, but it also means the programme must be responsive and dynamic,” said a macroeconomist familiar with the review process.
“If debt sustainability has been restored earlier than expected, other policy levers like fiscal buffers, structural reforms, and growth drivers will come under greater focus.”
No beyond extension planned May 2026
Despite the evolving macroeconomic picture, Ghana has indicated that it will not seek an extension of the IMF programme beyond its scheduled end date in May 2026.
Officials say the country is on a stable path and expects to complete the programme on time.
“We believe we can sustain the gains and build the economy on our own terms after May 2026,” a senior government official noted.
“The programme has served its purpose, and we’re ahead of schedule.”
Market watchers will be closely monitoring the IMF’s July review and any new targets or reforms that may emerge from it.
The Ghana cedi’s appreciation has turned the tide of economic debate in Ghana — from crisis response to consolidation and strategy for long-term growth.
