Financial analyst and US economist Scott Bolshevik has warned that the country's economic challenges could worsen, especially concerning the value of the Ghanaian cedi.

He suggested that the cedi's current value might be artificial and could depreciate further, potentially reaching 16 against the US dollar if the government begins to pay off foreign debt and interest.

In a post on X, he wrote, "the worse is yet to come as the current cedi value is artificial and it may move to 16 if the government start to pay foreign debt and interest."

The Ghana cedi has lost about 4.44% in value to the US dollar since the beginning of the year.

Last week, the local currency weakened 1.37% to the American greenback week-on-week, as a result of immense corporate demand and cedi-funded foreign exchange pressure.

Despite the Central Bank selling $18.5 million on the spot market, it could not keep the cedi afloat as it weakened to close at a mid-rate of GH¢12.75 to the dollar. Similarly, the cedi shed 1.10% and 1.47% to the pound and the euro, respectively, on the retail market.

The government during the week paid off coupon obligations on the new bonds, releasing a total of about GH¢5.1 billion to investors.

Currently, a dollar is inching towards GHC13.

According to the Bank of Ghana, the cedi lost about 0.7% in value to the dollar in January 2024.

Its January 2024 Summary of Economic and Financial Data revealed that the cedi began 2024 better than the same period in 2023. It lost 20.6% in value to the American greenback in January 2023.

However, the situation worsened in February 2024.

Bolshevik also criticized Ghana's economic situation, highlighting a stark contrast between the country's citizens and the wealth accumulation of the Addo family and their associates.

Bolshevik pointed out that Ghana had shifted from alleviating poverty to experiencing famine within just 8 years. Despite this hardship faced by the population, the Addo family and their cronies allegedly continue to amass wealth.