The International Monetary Fund (IMF) has stated that a sustained improvement in the debt trajectory warrants upgrading Ghana’s Debt Sustainability Analysis (DSA) rating from high to moderate risk of debt distress. This was due to uncertainty around the exchange rate and gold prices. With continuing macroeconomic and exchange rate stability, and a clearer fiscal outlook, the IMF said in its Country Report on Ghana that the Staff now proposes to remove this judgement and upgrade Ghana to moderate risk of debt distress, consistent with the mechanical signal. Debt Vulnerabilities RemainsDespite progress, the IMF said the debt vulnerabilities remain elevated and require continued vigilance. “The exchange rate remains a key transmission channel, given the substantial share of FX-denominated external debt and non-resident holdings of domestic debt.