A professor of Applied Economics at John Hopkins University, Professor Steve Hanke, has said Ghana’s finance minister, Ken Ofori-Atta, must be dreaming to think the cedi is currently performing well.
In a rant on Twitter, Hanke said recent comments from Ofori-Atta that measures being implemented by the Bank of Ghana has ‘stabilised the cedi’ are a figment of his own imagination.
“#Ghana’s Finance Minister Ken Ofori-Atta says the Bank of Ghana’s efforts to contain #cedi depreciation are “paying off.” SPOILER ALERT: Ofori-Atta must be dreaming. Since Jan. 2020, the cedi has depreciated ∼40% against the USD.” Professor Hanke tweeted.
Professor Hanke has consistently written off the Ghanaian economy, particularly the performance of the currency the Ghana Cedi.
He has often noted how badly the cedi performs against its major trading partners and called for the establishment of a currency board as the only way to stave off the massive depreciation.
Ken Ofori-Atta, during a press briefing on September 28th, 2022, said measures being implemented by the bank of Ghana to arrest cedi depreciation is gradually paying off.
“As part of measures to shore up our reserves, improve exchange rate stability and address some of the funding needs, the Ministry successfully worked on a US$750 million Afreximbank loan facility which was received in August 2022,” he explained.
“The traditional Cocoa Syndication Loan, expected in the last quarter of 2022 which will promote the cocoa sector, will further help us build our FX reserves and provide a strong buffer for the cedi in the last quarter of the year,”
Meanwhile, the cedi has constantly depreciated against the US dollar and other currencies, making it receive the designation as one of the worst performing currencies in the world!
Recently, Fitch also downgraded the Ghanaian economy to a CC rating, a junk rating.
Source: theGhanaianVoice.Com