The International Monetary Fund (IMF) has approved the immediate disbursement of $360 million to Ghana following the country’s successful debt restructuring agreement with its official creditors.

This new tranche brings the total disbursement to $1.56 billion since Ghana entered into a $3 billion three-year program with the IMF in May 2023.

The IMF’s decision, announced after an executive board meeting on Friday, follows a staff-level recommendation made in April, which stipulated the release of funds contingent upon Ghana securing a memorandum of understanding with its bilateral lenders.

Ghana met this condition on June 11 by agreeing to restructure $5.1 billion in debts.

The infusion of funds will bolster the Bank of Ghana’s efforts to stabilize the cedi, which has depreciated by nearly 22% against the dollar this year, positioning it as the fourth-worst performing currency among those tracked by Bloomberg.

“This agreement on a debt treatment, consistent with program parameters, provided the financing assurances necessary for the second review under the extended credit facility arrangement to be completed,” the IMF stated.

Ghana’s journey to financial stabilization includes the reorganization of nearly all its $43 billion debt under the Group of 20’s Common Framework.

In addition to the official creditors’ agreement, Ghana also reached a preliminary accord with private creditors to restructure $13 billion in eurobonds.

This marks a significant step in the comprehensive debt restructuring process that began 18 months ago.

The IMF noted that Ghana’s performance under the program has been generally strong, despite the challenging economic environment.

“The medium-term outlook remains favorable but subject to downside risks — including those related to the upcoming general elections,” the IMF cautioned.

Ghana is set to hold presidential and parliamentary elections on December 7, raising concerns about potential election-related budget overruns.

The IMF emphasized the importance of maintaining fiscal discipline to ensure the program’s success and the country’s economic recovery.

The G-20 framework, which now includes sovereign creditors such as China, aims to ensure fair sharing of debt restructuring losses between bond investors and bilateral lenders.

Ghana’s agreement with private creditors is consistent with these principles but requires confirmation on comparability of treatment by the official creditor committee.

In a bid to stabilize the foreign exchange market and ensure efficient management of excess foreign currency, the Central Bank of Nigeria (CBN) has introduced new guidelines for Deposit Money Banks (DMBs) regarding the deposit of foreign currency notes.

The directive, detailed in a circular issued by the Director of Currency Operations, Mohammed Solaja, was published on the CBN’s website on Friday.

Under the new regulations, each bank is permitted a maximum daily deposit of $10 million in USD 100 and USD 50 notes. These deposits can only be made at the CBN branches in Abuja and Lagos.

For smaller denominations, such as $20 notes and below, the maximum daily deposit is set at $1 million.

The circular, referenced as COD/DIR/INT/CIR/001/016, specifies that DMBs must notify the CBN in writing of their intention to make such deposits at least three working days in advance.

This measure aims to facilitate proper planning and efficient handling of foreign currency deposits.

“To deepen the foreign exchange market, boost liquidity, and attain convergence in the exchange rates of the parallel and official markets, the Central Bank of Nigeria (CBN) has approved that DMBs may deposit their excess foreign currency notes with Lagos and Abuja branches of the bank,” the circular stated.

“The approval is a response to the increasing demand by DMBs to deposit their forex cash with CBN for onward credit to their offshore accounts with correspondent banks.”

The CBN’s move comes amid growing concerns over the volatility of the naira and the need for more robust management of foreign currency reserves.

By capping daily deposits and requiring advance notification, the CBN aims to better monitor and control the inflow of foreign currency into the banking system.

Industry analysts have welcomed the new guidelines, noting that they could help reduce pressure on the naira and contribute to a more stable foreign exchange market.

However, some have also expressed concerns about the potential impact on banks’ operational efficiency, especially for those handling large volumes of foreign currency transactions.

The new rules are part of broader efforts by the CBN to enhance liquidity and achieve exchange rate stability.

The central bank has been implementing various measures to address the challenges in the foreign exchange market, including interventions in the forex market and policy adjustments to attract foreign investment.

The Federal Government, through the Central Bank of Nigeria, is set to commence the disbursement of N150 billion in loans to micro, small, and medium enterprises (MSMEs) and manufacturers by the end of July.

This initiative aims to bolster the nation’s economy amidst ongoing economic challenges.

Doris Uzoka-Anite, the Minister of Industry, Trade, and Investment, revealed this significant development on Thursday through her official X handle.

She stated that the government has dedicated N75 billion to support MSMEs and another N75 billion to the manufacturing sector.

The disbursement process is in its final stages, with applications still open for interested businesses.

The Presidential Conditional Grant Scheme, part of the broader Presidential Palliatives Programme, was unveiled in December 2023.

This scheme is designed to help businesses navigate the economic pressures resulting from recent government policies, such as foreign exchange market harmonisation and fuel subsidy removal.

“To all applicants of the Presidential Conditional Grant Scheme who are yet to be paid, thank you for your continued patience. The disbursement process is still ongoing, and we have allocated about 60 percent of the 1 million grants,” Uzoka-Anite noted.

The scheme has already provided financial grants of N50,000 each to 60 percent of the proposed one million beneficiaries across Nigeria’s 774 local government areas.

In response to complaints from applicants who have not yet received their grants, the minister clarified that the selection process was not based on who applied first but rather on a random computer-generated selection.

She acknowledged the delays in the disbursement process, attributing them to issues such as incorrect or missing data, duplicate applications, and spurious entries.

“Almost 4 million Nigerians applied for the Palliative grant of 50k, but only 1 million beneficiaries can be accommodated. This means not all applicants will receive the grant,” she explained.

Uzoka-Anite emphasized that the government is committed to ensuring fairness and accuracy in the disbursement process.

Last month, the government disbursed a total sum of N20.11 billion to 402,283 beneficiaries through their bank accounts, verified by their Bank Verification Numbers (BVNs).

The minister expressed her gratitude to the applicants for their patience and urged them to provide constructive feedback without resorting to abuse or bigotry.

“Personal insults and hate speech are not likely to aid your applications and will not be tolerated. Together, we can build a more prosperous Nigeria,” she added.