The International Monetary Fund (IMF) has called for Ghana to strengthen the Bank of Ghana's (BoG) balance sheet. This action intends to buttress a prudent monetary policy and reduce fiscal risks.
This advice follows a recent IMF mission visit to Ghana, which took place from April 29 to May 15, 2026. The IMF stated that losses from the Domestic Gold Purchase Programme (DGPP) highlight the need for more transparency. Reducing quasi-fiscal activities, which are government-like spending by the central bank, will also strengthen the BoG's financial position.
Strengthening the central bank's balance sheet is critical for firmly anchoring inflation expectations in Ghana. A strong BoG can implement monetary policy more effectively. This will help maintain public confidence in the cedi’s value. It also supports the broader effort to stabilize Ghana's economy and its fiscal outlook.
The IMF stressed the importance of increasing accountability and oversight for the BoG. This includes protecting its balance sheet from DGPP-related quasi-fiscal risks. Recognizing future costs in the national budget will also enhance transparency.
The Fund also underscored the ongoing priority of reinforcing financial sector stability. It praised Ghana's recent progress in strengthening bank recapitalization. They also welcomed the unwinding of temporary regulatory forbearance measures. These measures were introduced during the recent debt exchange program. Furthermore, the IMF noted intensified supervision and corrective actions for weaker financial institutions.
Ruben Atoyan led the IMF staff team during the mission. The Fund warned that continued vigilance is essential to tackle remaining vulnerabilities in the financial sector. These challenges include effectively implementing reform and restructuring strategies for state-owned banks. Specialized deposit-taking institutions also require attention. Reducing high non-performing loans (NPLs), which are overdue debts, is another crucial step. Supporting sustainable credit growth will help the economy expand responsibly.
Protecting the BoG’s balance sheet from quasi-fiscal risks will prevent the government from shifting fiscal burdens to the central bank. This practice can weaken the BoG's independence and its ability to control inflation. The recommendations aim to ensure the central bank can focus solely on maintaining price stability. This is its primary mandate. It will also reduce the likelihood of future financial crises and foster a more predictable economic environment.