He described increasing food prices and fuel hikes as key factors that have resulted in labour agitations and violent protests over living conditions in Ghana.
Prof. Hanke, who was commenting on the current inflation rate which reached 29.8 per cent in June, suggested Ghana must mothball the Bank of Ghana and instead install a currency board to help address the current surging trend of inflation.
Under President Akufo-Addo’s leadership, things just keep getting worse. Sky-high food and fuel costs have triggered violent protests.
Ghana must mothball its central bank, put it in a museum, and install a currency board, NOW, Prof. Hanke wrote.
It would not be the first time Professor Steve Hanke has painted a gloomy picture of Ghana’s economic indicators.
The 79-year-old economist recently described Ghana’s inflation status as terrible.
In addition, he has also described the Ghanaian cedi as a central bank junk currency simply meaning its value is unreliable on both the international and domestic markets.
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 to Finance Minister Ken Ofori-Atta.
The 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 concluded its visit and 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 pandemic.