Dr. Williams Kwasi Peprah, an associate professor of finance at Andrews University in the United States, has referred to the ongoing depletion of the nation's reserves as a major concern that necessitates urgent assistance from the IMF in order for the nation to be able to secure concessionary loans at lower interest rates.
He asserted that this is preferable than the government borrowing commercial loans at higher rates.
Ghana's net foreign exchange reserves decreased from $6.09 billion in January 2022 to $4.6 billion in April 2022. The expectation that several multinational corporations that have already declared dividends will also return the money to their investors has had an influence on the foreign currency market.
According to Dr. Peprah, the Fund does not impose limits on its members; rather, it assists with structural reforms that might not have an impact on governmental policy.
"IMF does not place limitations. They concentrate on structural changes, some of which may have an impact on government policy.
If it receives IMF assistance, he said, the country's currency would stabilise and trade easily with the rest of the globe.
"The IMF's primary goal is typically to prevent difficulties in global commerce. If you pay attention, manufacturing on the other side of the globe sells its products in Africa. Africa must thus have the resources to pay for them.
To be able to pay their [international] obligations when they are due, they urged countries to hold onto all of their reserves.
"The Fund encourages international trade, which brings me to my second argument. Thus, when they sense that a country's position will have an influence on other regions of the world, they lend to governments for that reason. They carry out that to guarantee that each nation's balance of payments is sound, he said.
When they discuss the balance of payments, "you will see another point so that the dynamics of international commerce are not twisted," he continued.
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