Blame Cedi depreciation, tariff hikes on mismanagement – Financial Analyst

A financial analyst, Michael Nii Yarboi Annan has blamed the Cedi depreciation on mismanagement on the part of the managers of the Ghanaian economy.

A dollar shortage in Accra’s forex market last week fuelled the rate of depreciation of the Ghana cedi as it neared GH¢10 to one US dollar and had a negative impact on importation of goods.

While some banks were quoting ¢9.95 to a dollar, others sold a dollar for ¢9.90 over the weekend.

Reacting to the development on Dwaboase on TV XYZ that triggered the Ghana Union of Traders’ Associations (GUTA) to close all their shops on Monday, August 29, , Mr Yarboi Annan only blamed the government for mismanaging the economy.

To him, the government was busy paying lip service to the challenges, leading to the recent electricity and water tariff hikes.

Inflation

This month, year-on-year inflation announced by the Ghana Statistical Service after its monthly monitoring for the month of July crossed the 30% mark to hit 31.7%.

The increase in inflation, officials noted, was once again fuelled by Transport (44.6%); Housing, Water, Electricity, Gas and Other Fuels (43.0%).

Recently, US-based Economist, Professor Steve Hanke criticised 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 the John Hopkins University in the US has in his calculations disputed Ghana’s inflation figures by officials.

In a tweet, the economist who has been monitoring the economic situations in over hundred countries globally said Ghana is in 6th place in this week’s inflation table.

“On August 18, I measured Ghana’s #inflation at a stunning 77%/yr-more than 2x the official inflation rate of 32%/yr,” Hanke stated.

Prof Steve Hanke says to put an end to Ghana’s economic death spiral, managers of the economy must install a #CurrencyBoard.

Again, Prof. Hanke in another tweet advised the Akufo-Addo government to temporarily stop the Bank of Ghana from determining the cedi’s value against major trading currencies.

“Since Jan 1, 2020, the Ghana’s #cedi has depreciated by a stunning 42.3% against the USD. Now, Ghanaians are shutting businesses down in protest. When will Pres. Akufo-Addo learn? Ghana MUST mothball its central bank & install a currency board!,” the economist said in a tweet.

Government’s Efforts

The Akufo-Addo government has said despite running to the IMF, officials are working tirelessly to halt the currency depreciation.

Ghana’s Information Minister, Kojo Oppong Nkrumah, has revealed the government is expected to inject some $2 billion into the Ghanaian economy shortly.

The Ofoase Ayirebi legislator hinted in Accra the 750 million dollars expected from the Afremix Bank will hit the accounts of the Bank of Ghana this week, whilst the cocoa syndicated loan will add $1.3 billion.