By Racheal Asamoah
In a recent joint press briefing, the Governor of the Bank of Ghana (BOG), Dr. Ernest Addison, revealed that despite facing delays in receiving some donor support, the Bank’s foreign exchange reserves have maintained their strength, standing at an estimated $6.2 billion as of April 5th of this year.
Dr. Addison affirmed the BOG’s commitment to implementing policies that have proven instrumental in preserving the gains achieved thus far. He emphasized the importance of continuity in these measures to ensure stability and resilience in the face of external challenges.
“Besides the delays in disbursement of some total support, our foreign exchange reserves have reduced steady. And this reported at 6 .2 billion. U .S. donors also failed into 2024. We will continue to implement the policies that have held sustained back progress, including the innovating goal for reserves program, which has acted as a day -changer in a foreign exchange management strategy,” He stated.
Addressing concerns about inflation, Dr. Addison projected an end-year inflation rate of 15 plus or minus two percent. This forecast reflects the BOG’s proactive stance in managing inflationary pressures and maintaining price stability within the economy.
He explained that “with substantial progress in these measures, we are beginning to reap substantial macroeconomic dividends. Inflation has dropped significantly, from a peak of 54% at the end of 2022 to 23% in 2023. This change last year, supported by tighter monetary policy and stronger foreign exchange reserves.”
Regarding ongoing structural reforms, Dr. Addison expressed optimism about the flexibility expected from the International Monetary Fund (IMF). He highlighted the collaborative efforts between the government and the BOG to pursue necessary reforms aimed at sustaining economic progress and bolstering investor confidence.
“We have reached the conclusion that we must continue with steadfast urban implementation policies, continue with the fiscal rectitude, continue with the tight monetary policy stance, and pursue the necessary structural reforms to obtain the sustainability of the progress we are making. We expect some degree of flexibility to reflect changing dynamics in the Ghanaian economy.”