Business General

Prof Steve Hanke tackles Akufo-Addo again!

Steve Hanke, a professor of Applied Economics at John Hopkins University, has tackled President Nana Addo Dankwa Akufo-Addo and the managers of Ghana’s economy for the economic woes facing the country.

The Professor who has some time now been monitoring Ghana’s economic situation has been putting some spotlight on it with his #EconWatch which among others measures Ghana’s inflation daily. He believes the Akufo-Addo-led government is mismanaging the economy, a result is the current plight facing the country and running to the IMF for a bailout programme.

Sharing a story of GUTA threatening to close shops over the Cedi depreciation and high inflation, Prof Hanke tweeted that Ghanaians are shutting down businesses in protest of the 42.3% Ghana Cedi depreciation to the US Dollar.

He asked when will Nana Addo Dankwa Akufo-Addo will learn, because the current currency depreciation required the installation of a “currency board.”

For some time now, he has been advising the President of the Republic to mothball the Bank of Ghana, but all to no avail.

“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!” Prof Steve Hanke’s tweet said.

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!https://t.co/BGHsbjgXCc— Steve Hanke (@steve_hanke) August 23, 2022

On his inflation dashboard, Ghana was ranked 6th because the country’s inflation has risen two times the official inflation rate by the Statistical Service of 32%.

“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. To put an end to its economic death spiral, GHA must install the Central Bank and install a #CurrencyBoard,” Prof Hanke added.

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. To put an end to its economic death spiral, GHA must install the Central Bank and install a #CurrencyBoard. pic.twitter.com/llvnHV8dSi— Steve Hanke (@steve_hanke) August 23, 2022

Background

It will be recalled that the government hitherto used to borrow from the Eurobond market, however, unfavourable economic conditions have compelled it to initiate contacts with IMF on the orders of President Akufo-Addo.

Government hopes that through this approach, confidence from lenders will bounce back.

Consequently, the IMF arrived in Ghana from July 6-13 to begin initial discussions on the programme government intends to subscribe to.

The team has recommitted to helping the country to restore macroeconomic stability, safeguard debt sustainability, promote inclusive and sustainable growth, and address the impact of the war in Ukraine and the lingering aftershocks of the COVID-19 pandemic.

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