Dr Johnson Pandit Asiama, Governor of the Bank of Ghana (BoG), says Ghana’s proposed Policy Coordination Instrument (PCI) with the International Monetary Fund (IMF) will be integrated into the country’s monetary policy framework.
He said the non-financing programme would reinforce inflation targeting, improve interest rate transmission and strengthen the BoG’s balance sheet over the medium term following recent losses.
Speaking at the opening of the 130th Monetary Policy Committee (MPC) meeting in Accra on Monday, Dr Asiama described the PCI as a credible next step in Ghana’s institutional engagement with the IMF after the successful completion of the Extended Credit Facility (ECF) programme.
He explained that unlike the ECF, which provided financing support, the PCI was a technical assistance instrument aimed at signalling policy credibility and unlocking financing from private investors and development partners.
Dr Asiama said the PCI would include commitments to improve interest rate transmission mechanisms, enhance liquidity forecasting frameworks and maintain conditionality under the inflation-targeting regime.
He said the programme would place emphasis on forward-looking policies and anchoring inflation expectations as part of broader efforts to realign interest rates across the economy while inflation remained relatively low.
“The PCI will also focus on strengthening the BoG’s balance sheet over the medium term by limiting quasi-fiscal activities, improving transparency and oversight of the Domestic Gold Purchase Programme (DGPP),” he said.
Dr. Asiama said the three-year programme, which was awaiting IMF Executive Board approval, was structured around six pillars, including sustaining growth-friendly fiscal adjustment, safeguarding debt sustainability and strengthening monetary and exchange rate policy frameworks.
The other pillars, he said, included strengthening fiscal transparency and governance, particularly in state-owned enterprises and quasi-fiscal activities, reinforcing financial sector stability and promoting economic diversification and inclusive growth.
Dr Asiama said the PCI would help preserve gains achieved under the ECF programme while signalling the benefits of IMF engagement and reducing Ghana’s financial dependence on IMF resources.
He said the 130th MPC meeting was taking place at a period of heightened policy complexity although the initial conditions of the Ghanaian economy had improved significantly since the previous MPC meeting in March 2026.
Despite challenges in the external environment, Dr Asiama said the economy remained resilient amid increasingly difficult global macroeconomic conditions.
He said the ongoing conflict in the Middle East had become a major external risk since the 129th MPC meeting, with its economic consequences now evident in global data.
“The closure of the Strait of Hormuz has triggered a sustained surge in global energy prices. The IMF has revised its 2026 global growth projection downward to 3.1 per cent from an initial estimate of 3.3 per cent, citing the adverse demand and supply effects of the conflict,” he stated.
Dr Asiama said government’s plan to raise US$1 billion through local-currency bonds to finance cocoa purchases for the 2026/27 crop season would help reduce reliance on dollar funding and foreign lenders.
He said that the temporary reduction in regulatory margins on petroleum products would help cushion the direct impact of rising crude oil prices on domestic inflation.
Dr Asiama reaffirmed the Bank’s commitment to reforms initiated under the ECF programme and expressed confidence that the transition to the PCI framework reflected a more mature engagement with the international financial system grounded in domestic ownership and institutional credibility.
GNA
