Even though the local flood is worth more than 60%, Prof.
Once again, he predicts that the Ghanaian cedi is going down the tubes.
In a Twitter post, Professor Steve Hanke described the cedi as a ‘junk currency’.
He wrote “In #Ghana, the #cedi is going down the tubes. According to my measurements, the cedi has depreciated ~49.32% against the USD since January 1, 2022. Thanks to Ghana, my rogues gallery of JUNK currencies continues to grow.”
A depreciation of the Ghanaian cedi will have a negative impact on imports and exacerbate local inflation.
The local currency has fallen sharply against major currencies, particularly the US dollar since 2022.
As of January 30, 2023, the cedi has depreciated by a substantial 19.1 percent to the US dollar.
According to the Bank of Ghana’s summary of economic and financial data, the cedi traded at GH¢10.60 to one US dollar on the interbank market in January 2023, compared to GH¢8.57 in December 2022.
The central bank, however, has pegged the cedi’s depreciation to 30 percent against the American greenback in 2022.