The decision comes after the gold, oil and cocoa producer reached a deal to restructure $5.4 billion of loans with its official creditors, a key step to unlocking the second tranche of IMF funding.
"All quantitative performance criteria for the first review and almost all indicative targets and structural benchmarks were met," the IMF said in a statement.
The authorities' reform efforts have helped to improve growth, decrease inflation and increase international reserves, the Fund said, forecasting that the economy would grow 2.3% in 2023 and 2.8% in 2024.
It did not say exactly when the approved tranche would be disbursed, but two senior government officials close to the discussions told Reuters the payout would come by Wednesday at the latest.
Ghana asked the IMF for financial support in 2022 as it grappled with its worst economic crisis in a generation, which came amid spiraling public debt-servicing costs.
"The board decision, along with the imminent release of funds, is a shot in the arm for the economy, especially the exchange rate, which remains vulnerable to fluctuations in sentiments and central bank reserve capacity," Leslie Dwight Mensah, an economist at the Institute for Fiscal Studies in Accra, told Reuters.
The second tranche, once signed off, should trigger $550 million in additional World Bank funding, Ghana's Finance Ministry said last week — $300 million in budget support, which the World Bank confirmed on Thursday, and $250 million for a fund to support financial sector stability.
The West African country, which defaulted on most external debt after servicing costs soared, also needs to reach a relief deal with private holders of about $13 billion in international bonds.
It is aiming to restructure two-thirds of its external debt that was about $30 billion at the end of 2022.