Shut down BoG, install currency board to save your Cedi – Steve Hanke

Economy & Investments Dr. Ernest Addison, Governor of the Bank of Ghanaleft and Prof. Steve Hanke, renowned economist
JUN 2, 2023 LISTEN
Dr. Ernest Addison, Governor of the Bank of Ghana[left] and Prof. Steve Hanke, renowned economist

Renowned American economist Professor Steve Hanke wants the Bank of Ghana (BoG) collapsed and replaced with a currency board.

He explained that the move will help to stabilize the country's depreciating Cedi against major foreign currencies such as the US dollar.

Prof. Hanke, who has been following Ghana's economy for a while now, made this suggestion in a tweet on Thursday, June 1.

The suggestion comes as the Cedi, according to the economist, has been battling against major foreign currencies, with a 44% depreciation against the US dollar since January 2022.

"The Ghanaian cedi has depreciated against the USD by 44% since Jan 2022. #Ghana takes 10th place in this week's Hanke’s #CurrencyWatchlist. To save the cedi, GHA must mothball its central bank and install a currency board," Hanke tweeted.

However, Bloomberg reports that the Cedi is poised for one of the strongest rallies globally after the country's $3 billion agreement with the International Monetary Fund (IMF), which has given investors some hope.

The Cedi was the best-performing currency worldwide against the dollar in the run-up to the IMF deal, which was sealed mid-month of May 2023.

Isaac Donkor Distinguished
Isaac Donkor Distinguished

News ReporterPage: IsaacDonkorDistinguished