Ghana Cedi: Professor Hanke Ranks Cedi Among Top 10 Worst Performing Currencies Two Weeks Into 2023

• Professor Hanke has released his 'currency watchlist' and shows that the Ghana cedi is among the top 10 worst-performers against the dollar
• The Hanke's Currency Watchlist shows the cedi is the 8th worst-performing currency against the US dollar as at January 18, 2023
• The unfavourable analysis suggests that inflation and general standard of living will get higher in the coming days as a depreciation of the cedi usually causes these

Professor Steve Hanke, an economics professor at the John Hopkins University in the United States, has said his analysis shows the Ghana cedi is among the top 10 worse-performing currencies currently.

His verdict on the local currency, as published on his "Currency Watchlist", means that just 18 days into 2023, the cedi's woes have returned.

"The Ghanaian cedi has depreciated against the USD by 43.91% since Jan 2022, which is why #Ghana takes the 8th place in this week's Hanke’s #CurrencyWatchlist. The cedi is a central bank junk currency. GHA must mothball its central bank and install a currency board," he tweeted on late Wednesday, January 18, 2023.

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The renowned economist also reiterated the one recommendation that runs through all his comments on the Ghanaian economy: that Ghana needs a currency board and not a central bank.

According to the Hanke Currency Watchlist, the Ghana cedi is the 8th worst-performing currency in the world against the dollar currently.

The cedi is currently trading for around GH¢13 to $1 at forex bureaus, although the BoG-approved interbank rates quote GH¢10.34 as buying price and GH¢10.35 as selling price on January 19, 2023.

BoG Governor Assures Ghana Cedi Will Not Depreciate Badly Like In 2022

Prof Hanke's unfavourable analysis of the Ghana cedi comes just days after Governor of the Bank of Ghana, Dr Ernest Addison, promised that the cedi will have a good run this year.

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Dr Addison said recently that the government's policy of exchanging gold for petroleum products will help lessen the pressure on the local currency.

He touted the gold-for-oil policy as the reason for the stabilisation of the cedi late last year.

According to a report filed by Joy News, Dr Addison said he remains confident that the worst days of the cedi are over.

“I can stick my neck out that we will not see the sort of things we saw in 2022 if everything works well,” he the report quoted the BoG Governor.

Cedi Depreciation: Traders Predict Further Depreciation Till End of January 2023

Meanwhile, YEN.com.gh has reported in a separate story that Ghanaians have been advised to brace up for the worse effects of the cedi depreciation because the depreciation will persist until January ending.

The Ghana Union of Traders Association (GUTA) has said the current depreciation has been caused by repatriation of huge amounts of dollars by expatriates.

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Bank of Ghana assures country has enough gold reserves to exchange for oil

The depreciation of the cedi worsens inflation and makes the standard of living unbearable, especially for the poor.

Source: YEN.com.gh