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

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August 16, 2022
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Latest Ghana Inflation Rate the Highest in 19 Years — Economist Recommends Installation of Currency Board
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Ghana’s ongoing economic woes appeared to worsen in July after data from the country’s statistical agency, Ghana Statistical Service, suggested that the inflation rate is now nearly 31.7%. The nearly 2% increase in the country’s inflation rate comes at a time when the local currency is reported to have depreciated by as much as 30% since the start of the year.

The Bloomberg report also suggested that the Ghanaian government is hoping an IMF bailout will help restore investor confidence in its economy. However, concerning the bailout talks between Ghana and the IMF, the report cited an unnamed source who said:

Since negotiations for the program are starting now, it’s too early to comment on the final form the program will take. The Extended Credit Facility for low-income countries is the Fund’s main tool for medium-term support for countries facing protracted balance of payments problems, similar to Ghana’s. The duration of such an arrangement is between three to four years, and extendable to five years.

The source, however, said the IMF board is going to have the final say on the amount of funding that Ghana is going to actually receive.

Register your email here to get a weekly update on African news sent to your inbox:

What are your thoughts on this story? Let us know what you think in the comments section below.

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