The Ghana cedi has extended its slide against major international currencies over the past two weeks, driven by strong demand for foreign exchange and increased corporate profit repatriation.
Market data shows the local currency weakening across both the interbank and retail forex markets, as dollar demand continues to outpace available supply despite central bank interventions.
In the interbank market, the cedi fell to GHS 11.85 against the US dollar, compared to GHS 11.63 in the previous review period. It also weakened against the British pound and the euro, trading at GHS 15.85/GBP and GHS 13.66/EUR respectively.
The depreciation trend was even more pronounced in the retail market, where the cedi recorded losses of 0.81% against the dollar, 1.83% against the pound, and 1.40% against the euro, closing at GHS 12.30/USD, GHS 16.35/GBP, and GHS 14.30/EUR.
On a monthly basis, the currency depreciated by an average of 4.18% between April and May 2026, worsening from the 3.23% decline recorded in the previous month. This came despite the Bank of Ghana’s reported $1.1 billion in foreign exchange support during May.
Analysts say the pressure reflects sustained demand from importers and corporates, alongside tighter global dollar liquidity and higher import costs linked to elevated crude oil prices.
Additional strain is expected from multinational companies repatriating dividends and profits during the second-quarter settlement period, a cycle that typically increases foreign exchange outflows.
Looking ahead, expectations of a $1.2 billion forex support programme in June may help stabilise market sentiment, though analysts caution that this may not fully offset demand pressures if inflows remain weak.
In South Africa, the rand also weakened by 1.15% to 16.28 per US dollar, as rising oil prices and geopolitical tensions reduced investor appetite for risk assets and increased import cost concerns.
