Business News of Monday, 11 July 2022
Source: www.ghanaweb.live
2022-07-11‘The Ghanaian cedi is a central bank junk currency’ - Renowned US economist
Prof. Steve Hanke, renowned international economist at the Johns Hopkins University-USA
Ghana cedi suffers persistent depreciation against US dollar
Ghana’s inflation rate is terrible, Steve Hanke says
Government and IMF officials begin formal engagements
Renowned international economist at the Johns Hopkins University in the USA, Professor Steve Hanke has described the Ghanaian cedi as a ‘central bank junk currency’.
Junk currencies are simply those whose values are
Read full articleunreliable in both the international and domestic markets.
In a July 10 tweet, the US-based economist ranked the Ghana cedi in 16th place out of 18 other currencies on his Currency Watchlist – due to the persistent depreciation of the currency against others.
“By my calculations, the Ghana cedi has depreciated 29.5% against the USD since January 2020. The Ghanaian cedi is a central bank junk currency,” he shared on Twitter.
Meanwhile, it would not be the first time Professor Steve Hanke has painted a gloomy picture of Ghana’s economic indicators.
Most recently on July 9, he pegged Ghana’s inflation rate at 50%/year, describing the status as terrible.
The 79-year-old economist also shared footage from the just held ‘Arise Ghana’ protest, trumpeting the high cost of living in the country.
He has since questioned Ghana’s decision to enter an economic programme with the IMF, describing the move as one that will not salvage the economy.
He opines that a financial bailout from the Bretton Woods institution is likely to fail just like the previous 17 IMF programmes that Ghana has participated in.
“Today, I measure inflation in Ghana at a stunning 49.35%/yr. In a last-ditch effort, the government has begun negotiations with the IMF on a bailout deal. SPOILER ALERT: Another IMF loan won't save Ghana’s economy. Like its past 17 IMF programs, a new one will fail,” he earlier shared on Twitter.
However, a team from the International Monetary Fund arrived in Ghana last week to begin formal engagements with government officials geared towards an economic support programme.
MA/BB
