Professor of applied economics at Johns Hopkins University-USA, Steve Hanke, has indicated that the country’s economic wheels is in a bad state.
The academician in a Twitter post on August 6 pointed to the depreciating Cedi as the rationale behind the economic mess of Ghana.
In his opinion, the country ought to opt for a currency board in order to salvage the situation.
The Cedi in recent times has birthed with a marginal depreciation coupled with some analysts predicting that it may trade at GH¢10 to a US dollar – a major currency by end of the year.
“In #Ghana, the economy is in the tank. By my calculations, the #cedi has depreciated by ~34% against the USD since Jan. 1, 2020. The cedi is a central bank junk currency. GHA must mothball its central bank and install a currency board,” Prof Steve Hanke tweeted.
This is what Professor Steve Hanke has said on the state of Ghana’s economy in the past
Professor Steve Hanke has for some time now been monitoring Ghana’s economic growth and putting a spotlight on it.
In one of his #EconWatch diaries, the academic stated that, since 2021, Ghana has lost more than half of its sovereign bonds especially as the country is seeking [for] an IMF economic rescue programme.
This, he said, has made the West African country which is on the brink of debt default while labelling it as “a poster child for economic mismanagement.”
“Ghana’s sovereign bonds have lost more than half their value since 2021. Ghana has become a poster child for economic mismanagement and is now on the brink of default,” Prof Steve Hanke’s tweet on August 2 read.
He has also predicted that Ghana’s return to the International Monetary Fund will fail like its previous programmes.
By Lawrence Odoom|statenewsghana.com
Disclaimer: The opinions expressed in this publication do not in anyway reflect the opinions of State News Ghana