₦airaland Forum

I visited Ghana (our closest English neighbours) in August last year and I was happy at the giant strides they were taking in terms of economic growth. (Recall the Ghana must go days).
As of the day I left Nigeria, our dear Naira was exchanging for N81 to 1Ghc and thats approximately 1yr and 1month ago. Noting that the Ghanaian currency was redenominated in 2007 and lost 4 zeros in the process, one would expect that policy makers will always be wary of the economy sliding back to the pre-2007 days when $1=more than 10, 000ghc.
But just in one year of comparison (2013-2014), 1Ghc has depreciated to N45.54k (as at today, 06/10/14). This gap is mind blowing and thats why I am asking this question: WHAT IS HAPPENING TO GHANA'S ECONOMY??

GANDALF1:
I visited Ghana (our closest English neighbours) in August last year and I was happy at the giant strides they were taking in terms of economic growth. (Recall the Ghana must go days).
As of the day I left Nigeria, our dear Naira was exchanging for N81 to 1Ghc and thats approximately 1yr and 1month ago. Noting that the Ghanaian currency was redenominated in 2007 and lost 4 zeros in the process, one would expect that policy makers will always be wary of the economy sliding back to the pre-2007 days when $1=more than 10, 000ghc.
But just in one year of comparison (2013-2014), 1Ghc has depreciated to N45.54k (as at today, 06/10/14). This gap is mind blowing and thats why I am asking this question: WHAT IS HAPPENING TO GHANA'S ECONOMY??

whatever is happening to the Ghanaian economy is purely a matter for Ghanaians to ponder. exchange rate differentials can't be the only measure of how an economy faring,huh? the Ghanaian economy is still growing at close to 7% and foreign direct investments is the third highest in africa! Just leave Ghanaians lone and face your numerous problems

SantaMafia:
whatever is happening to the Ghanaian economy is purely a matter for Ghanaians to ponder. exchange rate differentials can't be the only measure of how an economy faring,huh? the Ghanaian economy is still growing at close to 7% and foreign direct investments is the third highest in africa! Just leave Ghanaians lone and face your numerous problems

No hard feelings bro. Just concerned cos i have family n friends over there. Moreover, Ghana is a sister nation to Nigeria.

So what do you think is causing the exchange rate depreciation sir?

They over-borrowed against poorly projected oil revenues, to finance wasteful recurrent expenditures. The thinning oil revenue has increased their borrowing cost, reduced their credit rating and is causing them to be on the verge of needing IMF support.

There are typical fundamental issues of central planning, poor tax revenue structures, poor capital/ infrastructural developments which is common to African economies.

This has led the the current state of their needing to pay more borrowing as the value of their local currency reduces because of fears of faleen revenue and wasteful spending.

mayoroflag:
They over-borrowed against poorly projected oil revenues, to finance wasteful recurrent expenditures. The thinning oil revenue has increased their borrowing cost, reduced their credit rating and is causing them to be on the verge of needing IMF support.

There are typical fundamental issues of central planning, poor tax revenue structures, poor capital/ infrastructural developments which is common to African economies.

This has led the the current state of their needing to pay more borrowing as the value of their local currency reduces because of fears of faleen revenue and wasteful spending.

Wow! This is interesting. Nigeria was available for them as a case study na. Why make the same mistake that is affecting us till date when it can be avoided?

GANDALF1:
Wow! This is interesting. Nigeria was available for them as a case study na. Why make the same mistake that is affecting us till date when it can be avoided?

Because black people tend to make the same mistakes in any situation.

Beef

Kwashion 4 d gods Ghanaians

pleep:
Because black people tend to make the same mistakes in any situation.

hm