Business News of Monday, 3 July 2023
Source: www.ghanaweb.com
An economist, Prof. Steve Hanke, cast a shadow of doubt on the effectiveness of Ghana's deal with the International Monetary Fund.
He projected that, just like other IMF programmes the country has had in the past, the current one was bound to fail.
Read the full story originally published on July 3, 2022, by GhanaWeb
Ghana has turned to the IMF 17 times
Ghana facing economic distress
Ghana cedi is a central bank junk currency, Steven Hanke
A renowned international economist at the Johns Hopkins University in the USA, Professor Steve Hanke, has stated Ghana’s decision to enter an economic programme with the IMF will not salvage the economy.
He predicts that a financial bailout from the Bretton Woods Institution is likely to fail just like the previous 17 IMF programmes that Ghana has participated in.
In a July 2 tweet sharing his view on the government’s decision to commence formal negotiations with the IMF for a bailout, Steve Hanke questioned Ghana’s last-ditch effort to save the economy which is in distress and saddled with a huge debt burden.
“Today, I measure inflation in Ghana at a stunning 49.35%/yr. In a last-ditch effort, the government has begun negotiations with the IMF on a bailout deal. SPOILER ALERT: Another IMF loan won't save Ghana’s economy. Like its past 17 IMF programs, a new one will fail.”
Today, I measure inflation in Ghana at a stunning 49.35%/yr. In a last ditch effort, the govt. has begun negotiations w/ the IMF on a bailout deal. SPOILER ALERT: Another IMF loan won't save GHA's economy. Like its past 17 IMF programs, a new one will fail.https://t.co/wpiLLIc6Nb
— Steve Hanke (@steve_hanke) July 2, 2022
#Ghana is in 16th place in this week's Hanke’s #CurrencyWatchlist. By my calculations, the #cedi has depreciated ~29% against the USD since Jan. 2020. The Ghanaian cedi is a central bank junk currency. pic.twitter.com/n9sGMfOZeq
— Steve Hanke (@steve_hanke) July 2, 2022