Cedi Depreciation: Local Currency Begins 2026 With 4% Decline Against Major Trading Currencies
- The cedi depreciated by an average of 4% against major currencies in January 2026 after a strong showing in 2025
- The Ghanaian currency's performance was mixed, trading at about GH¢12.00 to the dollar amid demand pressures
- The depreciation in the first month of 2026 contrasts sharply with the cedi's appreciation of 40.7% during 2025
The Ghana cedi began 2026 by depreciating by an average of 4% against major trading currencies.
Data from the Bank of Ghana’s January 2026 Summary of Economic and Financial Data showed the cedi trading at GH¢10.88 to the US dollar on the interbank market.
Source: Facebook
This was compared with GH¢10.45 at the end of December 2025, marking a 4% percent depreciation rate, according to the Bank of Ghana.
Beyond the dollar, the cedi also lost 4.9% against the pound and 4.1% against the euro, trading at GH¢14.77 and GH¢12.80 on the interbank market, respectively, over the period under review.
Over the past two weeks, the cedi recorded mixed performance across segments of the foreign exchange market.
In the retail market, the local currency exchanged at about GH¢12.00 to the dollar due to lingering demand pressures.
The dollar slipped modestly against the cedi, moving from GH¢11.90 to GH¢12.15, while the pound and euro firmed by closing at GH¢16.30 and GH¢14.20, respectively.
This January depreciation is a combination of seasonal foreign exchange demand, portfolio adjustments at the start of the year and underlying sensitivity to global financial conditions.
However, the scale of the depreciation remains modest relative to the exceptional gains recorded in 2025, where the cedi closed with a year-to-date gain of 40.7% on the US dollar.
Cedi to drop against USD in 2026
The Ghana cedi has already been predicted to weaken against the US dollar in 2026, according to UK-based firm Fitch Solutions.
Fitch Solutions said that global gold prices and reserves are expected to limit pressure on the country's exchange rate.
The UK firm noted that private consumption growth is forecasted at 6.5%, boosting GDP amidst rising public sector wages.
Forex billions assisted cedi in 2025
Meanwhile, the Bank of Ghana injected about $10 billion into the forex market in 2025 to help stabilise the cedi.
This was money sold to commercial banks and businesses to meet their dollar needs.
This was part of a broader strategy to meet market demand for dollars, and not a programme designed solely to defend the cedi.
Source: Getty Images
The forex came from the Bank of Ghana's Domestic Gold Purchase Programme, which has generated windfall gains from rising gold prices.
The central bank has executed the programme without depleting its reserves.
Mahama surprised at speed of economic turnaround
YEN.com.gh also reported that President John Mahama expressed surprise at the speed with which his government was able to turn the economy around.
He described the rapid recovery as only by the grace of God and admitted that he had expected it to take about two years to see any major turnaround.
Proofreading by Bruce Douglas, copy editor at YEN.com.gh.
Source: YEN.com.gh
