A financial analyst, Michael Nii Yarboi Annan, blamed the Cedi’s depreciation on mismanagement by managers of the Ghanaian economy.
A shortage of dollars in the Accra foreign exchange market last week fueled the depreciation rate of the Ghanaian cedi as it approached GH¢10 to the US dollar and negatively impacted the import of goods .
While some banks were quoting 9.95¢ to the dollar, others sold a dollar at 9.90¢ over the weekend.
Reacting to the development of Dwaboase on TV XYZ which prompted the Union of Ghana Traders Associations (GUTA) to close all its shops on Monday August 29, Mr. Yarboi Annan only blamed the government for mismanaging the economy.
For him, the government was busy responding with words to the challenges, which led to the recent hikes in electricity and water tariffs.
This month, the year-on-year inflation reported by the Ghana Statistical Service after its monthly track for July broke through the 30% mark to reach 31.7%.
The rise in inflation, officials noted, was again fueled by transport (44.6%); Housing, water, electricity, gas and other fuels (43.0%).
Recently, US-based economist Professor Steve Hanke criticized President Nana Akufo-Addo for the failing economy, exposing officials over inflation figures in the West African country. .
But Hanke, a professor of applied economics at Johns Hopkins University in the United States, in his calculations disputed officials’ Ghana inflation figures.
In a tweet, the economist who has been following the economic situation in more than a hundred countries around the world said that Ghana ranked 6th in this week’s inflation chart.
“On August 18, I measured Ghana’s inflation at a staggering 77%/yr, more than twice the official inflation rate of 32%/yr,” Hanke said.
Professor Steve Hanke says to end Ghana’s economic death spiral, managers of the economy need to install a #CurrencyBoard.
Again, Prof. Hanke in another tweet advised the Akufo-Addo government to temporarily prevent the Bank of Ghana from determining the value of the cedi against major trading currencies.
“Since January 1, 2020, the #Ghanaian cedi has depreciated by 42.3% against the US dollar. Now Ghanaians are closing businesses in protest. When pres. Akufo-Addo learn? Ghana MUST shut down its central bank and install a currency board!” the economist said in a tweet.
The Akufo-Addo government said that despite its bid for the IMF, officials were working tirelessly to stop the currency’s depreciation.
Ghana’s Information Minister, Kojo Oppong Nkrumah, has revealed that the government is expected to inject some $2 billion into the Ghanaian economy soon.
Ofoase lawmaker Ayirebi has hinted in Accra that the expected $750 million from Afremix Bank will arrive in Bank of Ghana accounts this week, while the cocoa syndicated loan will add $1.3 billion.