Ghana Cedi Depreciation: Local Currency Weakens by 8.4% Against US Dollar in First 5 Months of 2026
- The local currency has fallen by over 8% against the US dollar so far in 2026, per the central bank
- The latest performance of the cedi was captured by the Bank of Ghana’s May 2026 Economic and Financial Summary
- Unlike the sharp volatility witnessed in 2025, the 2026 depreciation pattern has been more gradual and sustained
The Ghana cedi depreciated by 8.4% against the US dollar during the first five months of 2026.
The May 2026 Economic and Financial Summary, released by the Bank of Ghana, provided updates on the local currency.
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The report noted that the latest decline is higher than the 6.6% depreciation recorded over the same period in 2025.
It signals renewed pressure on the local currency despite improvements in several key macroeconomic indicators.
According to the central bank, the cedi weakened from an average of GH¢10.95 to the dollar in January to GH¢11.4125 by mid-May 2026.
The cedi came under pressure early in the year, recording a year-to-date depreciation of 4.6% in January before briefly recovering in February.
The cedi resumed its downward trend in March and continued weakening steadily through April and May.
Unlike the sharp volatility witnessed in 2025, the 2026 depreciation pattern has been more gradual and sustained.
The cedi’s decline comes despite relatively strong external fundamentals.
Ghana recorded a trade surplus of $5.28 billion as of April 2026, supported by strong gold and oil export earnings.
If exchange rate pressures persist over the coming months, it could affect import costs, inflation expectations and business planning.
Bank of Ghana downplays early cedi depreciation
In the first quarter of 2026, the Bank of Ghana has downplayed concerns over the cedi’s early-year depreciation.
Bank of Ghana governor Johnson Asiama said these fluctuations were not unusual and were driven by seasonal and speculative factors.
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.
“Don’t get worried if you see the cedi moving a little bit. It is normal. Speculative behaviour can move the cedi."
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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 was forecast at 6.5%, boosting GDP amid 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.
How Bank of Ghana supported the Cedi
In 2025, YEN.com.gh reported that 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.
Source: YEN.com.gh
