According to economist Professor Godfred Bokpin, weak economic fundamentals are the cause of the cedi's ongoing devaluation versus the US dollar.

He contends that the performance of the cedi also reflects demand and supply mismatches, a lack of trust in the economy, and speculative activity.

"Unfortunately, the cedi doesn't misbehave by itself. It is a reflection of the fundamentals as well as supply and demand imbalances.

Because the cedi is currently no longer a store of value, it is a reflection of lack of trust in the economy as well as some economic speculation, according to Prof. Bokpin, who was quoted by Citinewsroom.com.

Touching on how the situation can be addressed, the Senior lecturer at the University of Ghana Business School called for urgent action to be taken to contain the persistent cycle of depreciation.

“Some kind of active intervention that suggests that we are uncomfortable with the depreciation [is needed]. No one likes uncertainty. Everyone loves predictability. Price stability is at risk. Credibility around Bank of Ghana’s own short-term price stability objective is at risk. So, we need to restore these by bringing everyone on board.”

“Government needs to build that consensus by looking at data from different angles. They need the buy-in of the opposition and organized labour across the country because implementing any programme affects everybody else, it will cause social unrest. Sometimes, the social adjustment costs are not evenly distributed and may affect those at the end of the income structure, so a good way to do this is to carry the whole nation along,” he explained.

Meanwhile, the woes of the Ghana cedi in the first 10 months of this year continued as it has seen its value decline by over 50 percent to the US dollar.

The situation, according to a recent Bloomberg tracking saw it ranked as the worst-performing currency in the world against the US dollar.

This has forced many businesses to collapse, culminating in worker agitations, and discontent over government policies, among others.