Cedi Predicted to Weaken by 8% Against the US Dollar in 2026
- The Ghana cedi is expected to weaken to the US dollar in 2026, according to UK-based firm Fitch Solutions
- Fitch Solutions said Global gold prices and reserves are expected to limit pressure on Ghana's exchange rate
- The UK firm noted that private consumption growth is forecasted at 6.5%, boosting GDP amidst rising public sector wages
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Fitch Solutions has predicted that the Ghana cedi will weaken by 8.0% against the US dollar in 2026,
The UK-based firm notes that this is below its long-term (2010-2025) average depreciation of 10.2%.
It also noted that elevated global gold prices and healthy international reserves will limit any undue pressure on the exchange rate.
It continued that while inflation will run slightly hotter in the second half of 2026 amid some demand-side pressures, it will remain modest by recent standards, limiting strain on household finances.
In addition, Fitch Solutions said the government’s commitment as outlined in the 2026 Budget to raise public-sector wages by 9.0% will further bolster purchasing power.
“As such, we forecast private consumption growth to stay strong at 6.5% in 2026, contributing 5.3 percentage points to headline real Gross Domestic Product growth”, it alluded.
Over the past two weeks, the Cedi has experienced modest depreciation pressures against the major trading currencies, driven mainly by seasonal demand and cautious foreign exchange support from the central bank.
In the interbank market, the US dollar Ghana cedi pair closed the fortnight at a midrate of GH¢11.41, up from GH¢1.12. Against the pound and euro, the cedi depreciated by 4.62% and 3.87%, closing at GH¢15.26 and GH¢13.32, respectively.
In the retail market, the cedi dipped 0.41% to GH¢12.05, while shedding 0.94% and 1.08% of its value against the pound and euro, closing at GH¢15.90 and GH¢13.95, respectively.
Source: YEN.com.gh
