{"id":14397,"date":"2022-11-10T07:46:55","date_gmt":"2022-11-10T07:46:55","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/worlds-worst-performing-currency-the-cedi-reverses-gains-economist-steve-hanke-says-ghana-inflation-now-over-140-economics-bitcoin-news\/"},"modified":"2022-11-10T07:46:55","modified_gmt":"2022-11-10T07:46:55","slug":"worlds-worst-performing-currency-the-cedi-reverses-gains-economist-steve-hanke-says-ghana-inflation-now-over-140-economics-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/worlds-worst-performing-currency-the-cedi-reverses-gains-economist-steve-hanke-says-ghana-inflation-now-over-140-economics-bitcoin-news\/","title":{"rendered":"World’s Worst Performing Currency, the Cedi, Reverses Gains \u2014 Economist Steve Hanke Says Ghana Inflation Now Over 140% \u2013 Economics Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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Just days after registering marginal gains against the U.S. dollar, the Ghanaian currency \u2014 the cedi \u2014 slipped to C14:$1 versus the U.S. dollar on the foreign exchange parallel market on Nov. 7. The cedi\u2019s reversal is said to have dented the currency\u2019s recovery prospects. On the other hand, Ghana\u2019s former president John Mahama and economist Steve Hanke have suggested that the country\u2019s inflation rate is much higher than the 37.2% which was recorded in September. <\/strong><\/p>\n

Cedi\u2019s Interbank Exchange Rate Unchanged<\/h2>\n

Just days after it marginally recovered from an all-time low<\/a>, the Ghanaian currency\u2019s exchange rate versus the U.S. dollar slipped beyond the 14:1 mark on Nov. 7, a report has said. According to the report, the cedi\u2019s fall from C13.95 to C14.20 per dollar on the forex parallel market suggested that the currency\u2019s much-talked-about recovery versus the greenback is unlikely to happen any time soon.<\/p>\n

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Bank of Ghana Exchange Rates pic.twitter.com\/oognH3AM42<\/a><\/p>\n

\u2014 Bank of Ghana (@thebankofghana) November 4, 2022<\/a><\/p>\n<\/blockquote>\n

Despite its latest fall versus major global currencies on the parallel market, the Bank of Ghana (BOG)\u2019s Nov. 8 exchange rate data showed the cedi was trading at just above 13 units for every dollar. In fact, since the BOG\u2019s Oct. 27 update, the cedi\u2019s interbank exchange rate versus the dollar has remained largely unchanged.<\/p>\n

Ghana\u2019s Real Inflation Rate<\/h2>\n

After starting the year trading above 6:1, the cedi, according to the BOG, \u201chas depreciated by 37.5 per cent, 24.1 per cent, and 27.5 per cent against the US dollar, the pound, and Euro, respectively.\u201d The BOG blames<\/a> higher crude oil prices, the \u201cnon-roll over of maturing bonds by non-resident investors,\u201d as well as policy reversals, for the cedi\u2019s woes.<\/p>\n

The cedi depreciation has, in turn, seen the country\u2019s official inflation rate surge past 37% in September. Despite this being the country\u2019s highest inflation rate in two decades, President Nana Akufo-Addo was recently quoted<\/a> claiming that Ghana\u2019s rate is still better than that of Togo and Senegal.<\/p>\n

However, former Ghanaian president John Mahama and Steve Hanke, a professor of applied economics at Johns Hopkins University, have cast doubts over the genuineness of Ghana\u2019s official inflation rate figures. While Mahama suggested that Ghana\u2019s food inflation is around 122%, Hanke placed Ghana\u2019s inflation rate at 142%, the world\u2019s third-highest rate.<\/p>\n

According to the economics professor\u2019s latest inflation dashboard<\/a>, the only countries whose inflation rates surpass that of Ghana are Zimbabwe (417%) and Cuba (151%).<\/p>\n

Register your email here to get a weekly update on African news sent to your inbox:<\/em><\/p>\n

What are your thoughts on this story? Let us know what you think in the comments section below. <\/strong><\/em><\/p>\n

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\nTerence Zimwara <\/h6>\n

\nTerence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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