BoG Builds Excess Reserves

Dr Ernest Addison


Governor of the Bank of Ghana (BoG), Dr Ernest Addison has announced that the implementation of the International Monetary Fund (IMF) supported Extended Credit Facility programme for the first six months of 2023 is broadly in line with the performance criteria targets for June 2023.

Despite the programme envisioning a drawdown in reserves of close to US$100 million, the BoG built reserves in excess of US$1 billion.

Dr Addison made this announcement at the 113th Monetary Policy Committee (MPC) press conference in Accra.

Furthermore, Dr Addison stated that the zero financing of the government’s budget, under the programme, was achieved.

He added that inflation, as at June 2023, was within the target band. The IMF deal, approved on Wednesday, May 17 and securing a $3 billion agreement, has already received its first tranche of $600 million.

Meanwhile, the Finance Minister Ken Ofori-Atta described the deal as a step towards implementing an ambitious and well-thought-out programme of reform for the economy and the country.

He acknowledged that adjustments, realignments, and a return to a path of steady economic growth are necessary.

Ofori-Atta mentioned that the reform programme, known as the Post COVID-19 Programme for Economic Growth (PC-PEG), is supported by the 3-year Extended Credit Facility arrangement with the IMF, built on clear targets and strong policy and structural measures.

He stressed that expenditure control, non-arrears accumulation, revenue growth, ECG collections and Energy Sector reforms are paramount to rebuilding the walls of the Republic with urgency.

By Vincent Kubi