Dr. John Kwakye, Director of Research at the Institute of Economic Affairs (IEA), has expressed strong criticism toward the Bank of Ghana (BoG) for its complacency in projecting an inflation rate of 18% for 2024.
This figure, which is more than three times higher than the IMF’s global average inflation forecast of 5.8%, has raised concerns about the country’s economic management.
Dr. Kwakye highlighted that the BoG’s projection, instead of aiming for a more competitive rate in line with global trends, reflects a troubling disconnect from international economic standards.
He further emphasized that such high inflation is a major contributor to the continued depreciation of the cedi, deepening the challenges facing Ghana’s economy.
“BoG has reportedly revised end-year inflation to 18%. This is far in excess of the Bank’s target of (8+/-2%) that it has consistently missed. It also demonstrates gross failure of monetary policy due to overreliance on an IT framework incapable of tackling supply-driven inflation.
“As economists, we have a duty to rescue the vanishing cedi. I am inviting all economists to offer one solution each. I will then pass them on to our economic managers. If they don’t act on them, at least we would have done our part”.
Dr. John Kwakye
Dr. Kwakye expressed deep frustration, stating that as Ghanaian economists, it appears there is no viable solution to the rapid decline of the cedi.
He lamented that, despite years of academic training and expertise, the inability to address the currency’s depreciation reflects poorly on the profession.
According to him, this failure raises serious concerns about the effectiveness of economic leadership in the country, calling for introspection and a sense of accountability.
He added that it is disheartening for professionals, who are equipped with the knowledge and skills to manage such crises, to stand by while the economy continues to suffer, saying that economists should feel a sense of shame over their inaction.
Dr. Kwakye Calls for National Dialogue to Rescue Cedi
Dr. John Kwakye highlighted the critical importance of initiating a national dialogue to rescue the cedi from its worsening depreciation.
He expressed concern that the currency seems to have been left to deteriorate on its own, with no significant efforts being made to stabilize it.
According to him, the cedi’s decline reflects a broader failure of economic governance and policy intervention, which can only be addressed through a coordinated national approach.
“How much more cedi depreciation can we tolerate?Why are we all sitting down while our currency is being extinguished? The cedi depreciation should be embarrassing to all economists. We seem to have failed Ghanaians”.
Dr. John Kwakye
Dr. Kwakye further urged stakeholders—including government officials, economists, financial experts, and the business community—to come together and engage in meaningful discussions to find sustainable solutions.
He warned that if the cedi continues to be neglected, the economic consequences could be severe, with increased inflation, reduced purchasing power, and heightened economic instability for Ghanaians.
In his view, the situation calls for urgent and decisive action, rather than passively allowing the currency to “find its own level.”
Dr. Kwakye also expressed deep concern over the current state of Ghana’s economy, specifically highlighting the 21.5% inflation rate in September and the 26% depreciation of the cedi so far in the year.
He described these figures as unacceptable and placed the blame squarely on the Bank of Ghana (BoG) for failing in its mandate to maintain price stability and protect the value of the national currency.
According to Dr. Kwakye, the BoG’s inaction has contributed to Ghana’s economic struggles, further eroding public confidence in the institution’s ability to manage the economy effectively.
He also argued that the BoG should not only be held accountable but should face consequences for its performance. “Indeed, the BoG Act must be amended to make the Bank not only accountable but also sanctionable, for failure to stabilize prices or the exchange rate.”
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