Latest Ghana Inflation Rate the Highest in 19 Years — Economist Recommends Installation of Currency Board

Ghana’s ongoing financial woes appeared to worsen in July after knowledge from the nation’s statistical company, Ghana Statistical Service, urged that the inflation charge is now almost 31.7%. The almost 2% improve within the nation’s inflation charge comes at a time when the native foreign money is reported to have depreciated by as a lot as 30% because the begin of the yr.

Economist Recommends Installation of Currency Board

According to the latest data from Ghana Statistical Service (GSS), the West African nation’s year-on-year inflation charge for July rose to 31.7%. The newest inflation charge is almost 2% larger than the 29.8% charge which was recorded in June, the info confirmed.

Confirmation of Ghana’s newest official inflation, which is claimed to be the very best in 19 years, coincided with a report suggesting the nation’s foreign money, the cedi, has now depreciated by greater than 30% because the starting of the yr. The foreign money’s depreciation has since prompted Steve Hanke — the Johns Hopkins economics professor who estimates Ghana’s actual inflation charge to be two occasions larger — to name for the speedy set up of a foreign money board.

Ghana Wants More From the IMF

Meanwhile, one other Bloomberg report has urged that President Nana Akufo-Addo’s authorities is now searching for $3 billion from the International Monetary Fund (IMF). The determine is double the $1.5 billion the federal government initially sought when it introduced its intention to borrow from the worldwide lender once more.

As beforehand reported by Bitcoin.com News, Ghana’s worsening financial scenario and stories of road protests in opposition to the rising hardships had prompted Akufo-Addo’s authorities to reverse its determination to not search a bailout from the IMF.

The Bloomberg report additionally urged that the Ghanaian authorities is hoping an IMF bailout will assist restore investor confidence in its financial system. However, regarding the bailout talks between Ghana and the IMF, the report cited an unnamed supply who mentioned:

Since negotiations for this system are beginning now, it’s too early to touch upon the ultimate type this system will take. The Extended Credit Facility for low-income nations is the Fund’s foremost device for medium-term help for nations dealing with protracted stability of funds issues, just like Ghana’s. The period of such an association is between three to 4 years, and extendable to 5 years.

The supply, nonetheless, mentioned the IMF board goes to have the ultimate say on the quantity of funding that Ghana goes to really obtain.

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