More Lamentations on the Ghana Cedi and IMF Bailout Programme

So, despite the announcement of the $940m bailout programme, the Cedi has been behaving cynically and purposelessly lamenting against the major international trading currencies – the dollar being the major culprit – for the first two months of this year.

The depreciation rates for the first two months of 2014 and 2015 are similar; however, the reasons are not too obvious to me at the moment – still digging for more info! On the surface, methinks this could be due to seasonality amidst a growing import bill. Like it or not, in the absence of the Central Bank pursuing clearly targeted monetary policies backed by a commensurate response in fiscal policy – our Achilles heel – from the Ministry of Finance, Ghana’s pseudo dollar economy will continue to persist.

NB: Depreciation and appreciation are technically not the same. I have explained the computational framework in this note:

About the Author

Theo Acheampong
Theo is an economist and social media enthusiast who provides regular commentary on socioeconomic and political developments in Ghana and Africa at large. Theo is passionate about leadership, entrepreneurship and the role of innovative technologies in solving Africa's developmental challenges.