Ghana will adopt the proposed Policy Coordination Instrument (PCI) with the International Monetary Fund into the country’s monetary policy framework, Governor of the Bank of Ghana, Dr Johnson Pandit Asiama, has announced.

Speaking at the opening of the 130th Monetary Policy Committee (MPC) meeting in Accra on Monday, May 18, Dr Asiama said the non-financing programme is intended to strengthen economic discipline, reinforce inflation targeting and improve interest rate transmission across the economy.

“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,” he said.

“The PCI will also focus on strengthening the BoG’s balance sheet over the medium term by limiting quasi-fiscal activities and improving transparency and oversight of the Domestic Gold Purchase Programme (DGPP).”

According to the Governor, Ghana’s economy has shown significant improvement in recent weeks despite challenges in the external environment, making the PCI a “credible next step” to sustain growth and maintain policy credibility.

“The Ghanaian economy has improved meaningfully since our last meeting in March 2026. Since the end of March, the picture has been one of a domestically resilient economy navigating an increasingly difficult external environment. The PCI represents a considered and credible next step in Ghana’s institutional engagement with the international financial architecture,” he added.

Detailing the difference between the Extended Credit Facility (ECF) and the PCI, Mr Asiamah noted that while the former focused on providing monetary support, the latter is a non-financing arrangement focused on technical support, policy credibility and helping Ghana attract funding from private investors and development partners.

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 continued that despite the complexities and challenging global macroeconomic conditions,

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 the 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, adding that the temporary reduction in regulatory margins on petroleum products would help cushion the direct impact of rising crude oil prices on domestic inflation.

About the regulatory reduction in fuel prices

The Government of Ghana announced an extension of its intervention at the fuel pumps. On April 16, the government introduced a temporary relief measure, absorbing GH¢2.00 per litre on diesel and GH¢0.36 per litre on petrol, which had been scheduled to end on May 15.

The intervention became necessary after prices surged due to geopolitical tensions in the Middle East and disruptions at the Strait of Hormuz, which raised international crude oil benchmarks and premiums.

After the intervention expired on Thursday, the Chamber of Petroleum Consumers (COPEC) petitioned the government to extend the measure, arguing that the conditions which prompted it persisted.

Consequently, the government, in a statement issued by the Ministry of Energy and Green Transition and dated May 15 under the signature of the Ministry’s Spokesperson and Head of Communication, Richmond Rockson Esq., said that following a Cabinet meeting chaired by President John Dramani Mahama, which reviewed developments on the international oil market and the impact of global price volatility on domestic fuel costs, it had heeded COPEC’s call by extending the intervention, although with some adjustments.

Under the April intervention, the government absorbed GH¢2.00 per litre on diesel and GH¢0.36 per litre on petrol.

However, under the latest review announced in a formal notice yesterday, the government said it would absorb GH¢1.07 per litre on diesel effective May 16, stating that the move was aimed at cushioning consumers against rising prices on the international market.

“Following the latest review, the Government has decided to intervene in the price of diesel by absorbing GH¢1.07 per litre effective May 16, 2026. This decision is necessary to ensure the sustainable distribution of petroleum products across the country while continuing to provide relief to consumers,” parts of the statement read.

The statement added that the intervention would remain in place for two pricing windows and would be subject to review after June 15 by Cabinet and the National Petroleum Authority (NPA), depending on global oil market trends and fiscal space.

“This intervention is expected to last for a period of two pricing windows, subject to review,” the statement added.