The Ghana cedi has come under renewed pressure, depreciating by 8.4 per cent against the US dollar in the first five months of 2026, according to the May 2026 Economic and Financial Summary released by the Bank of Ghana.
The latest performance marks a worse outcome compared to the 6.6 per cent depreciation recorded over the same period in 2025, signalling persistent strain on the local currency despite broader macroeconomic gains.
Data from the Bank of Ghana shows that the cedi weakened from an average mid-rate of 10.95 to the dollar in January 2026 to 11.4125 by mid-May. The currency initially faced pressure early in the year, recording a 4.6 per cent year-to-date depreciation in January before briefly recovering in February.
However, that rebound proved short-lived, as the cedi resumed a steady downward trend from March through April and May. Unlike the sharp swings seen in 2025, the 2026 depreciation has been more gradual but sustained.
The currency’s decline comes at a time when Ghana is posting relatively strong external economic indicators. The country recorded a trade surplus of $5.28 billion as of April 2026, driven largely by strong gold and oil export earnings.
Gross International Reserves also stood at $14.42 billion in May 2026, providing about six months of import cover. Inflation further eased significantly, dropping to 3.4 per cent in April from 18.4 per cent a year earlier.
Despite these improvements, analysts suggest that underlying pressures—such as capital outflows, portfolio rebalancing, and shifting investor sentiment—may be influencing foreign exchange market movements more strongly than macro fundamentals.
If the depreciation trend continues, it could have knock-on effects on import prices, inflation expectations, and overall business planning in the months ahead.
