The Ghana cedi experienced a notable depreciation of 8.4% against the US dollar in the interbank market during the first five months of 2026. This marks a worsening trend compared to the 6.6% depreciation observed in April 2025, according to the Bank of Ghana’s May 2026 Summary of Economic and Financial Data. The local currency traded at GH¢11.41 to one US dollar in May 2026, a significant shift from GH¢10.28 during the same period in the previous year.
Economic Context and Cedi Performance
The depreciation trend began in January 2026, with the cedi losing 4.6% of its value against the dollar. While February saw a slight improvement with a 2.2% loss, the decline resumed in March and April, with depreciations of 5.0% and 6.6% respectively. This sustained weakness reflects a broader pattern of the cedi’s performance against major foreign currencies, including the British pound and the Euro, against which it depreciated by 7.5% in the interbank market by May 2026.
However, a contrasting picture emerges in the retail market. Since January 1, 2026, the cedi has actually gained approximately 1.67% against the US dollar. It is currently selling at GH¢12.10 to one US dollar at forex bureaus, indicating a divergence between interbank and retail market performance.
Factors Influencing Depreciation
Analysts attribute the cedi’s poor performance primarily to sustained import demand coupled with cautious foreign exchange supply conditions. These fundamental economic factors are further influenced by market sentiment, which has been affected by recent concerns regarding the financial position of the Bank of Ghana.
The sustained demand for imports puts upward pressure on the US dollar, as Ghanaian businesses need dollars to pay for goods sourced internationally. Simultaneously, a constrained supply of foreign currency makes it more expensive for the cedi to acquire dollars, exacerbating the depreciation.
Expert Perspectives and Data Points
The figures from the Bank of Ghana clearly illustrate the substantial shift in the cedi’s value. The jump from GH¢10.28 to GH¢11.41 against the dollar in just over a year highlights the significant economic headwinds the country is facing. This trend aligns with forecasts made by many market analysts who had anticipated a challenging period for the Ghanaian currency.
While the article does not name specific analysts, the reference to
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