Cedi Depreciation: Bank of Ghana Downplays Early Cedi Weakness in 2026
- The Bank of Ghana Governor, Johnson Asiama, has responded to concerns about the weakening Ghana cedi in 2026
- The cedi traded at about GH¢10.9 to the dollar on the interbank market in 2026, compared with GH¢10.45 at the end of 2025
- Asiama addressed the concerns surrounding the local currency at the 128th Monetary Policy Committee on January 28
The Bank of Ghana has downplayed concerns over the cedi’s early-year depreciation.
Speaking at a press conference on January 28, Johnson Asiama said these fluctuations were not unusual and were driven by seasonal and speculative factors.
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Asiama remarked on the currency at the 128th Monetary Policy Committee.
“Don’t get worried if you see the cedi moving a little bit. It is normal. Speculative behaviour can move the cedi."
The cedi has depreciated by about 4% against the US dollar in 2026.
The local currency traded at GH¢10.88 to the dollar on the interbank market in January 2026, compared with GH¢10.45 at the end of December 2025.
Aside from the US dollar, Bank of Ghana tracking indicates that 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,
Fitch's prediction on Ghana cedi
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.
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.
How Bank of Ghana supported the Cedi
In 2025, the Bank of Ghana injected about $10 billion into the forex market in 2025 to help stabilise the cedi.
The forex came from the Bank of Ghana's Domestic Gold Purchase Programme, which was boosted by rising gold prices.
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This was money sold to commercial banks and businesses to meet their dollar needs, and the central bank said it provided the support without depleting its reserves.
Forex analyst explains new normal for cedi
Samuel Asiamah, a forex analyst, gave insight to YEN.com.gh that could help people looking to navigate the forex volatility as the cedi continued to depreciate.
The practice of hoarding dollars to guard against inflation and protect purchasing power is now riskier.
Asiamah explained that the cedi’s fair value has adjusted closer to equilibrium, so big profits from dollar hoarding are shrinking.
Proofreading by Samuel Gitonga, copy editor at YEN.com.gh.
Source: YEN.com.gh
