The Ghana cedi weakened slightly against the US dollar last week as businesses increased their dollar purchases to finance imports, according to market reports.
Data from Bloomberg show the cedi has depreciated by 4.8% since the start of 2026, marking the steepest decline among 23 African currencies tracked by the company.
“We’re seeing an increase in demand for dollars by companies to settle import bills, following the Christmas season,” said Gabriel Engmann, a currency trader at GCB Bank Ltd. in Accra. “We get inflows from some of our clients, but they’re not enough to meet demand.”
Despite the recent dip, the cedi remains backed by robust fundamentals. Strong gold prices and foreign reserves of $13.8 billion helped the cedi gain 41% in 2025 — its first annual rise since at least 1994 — supporting a sharp decline in inflation to 3.8% in January from 23.5% a year earlier.
The Bank of Ghana continues to manage dollar liquidity through twice-weekly spot auctions. At the most recent auction, lenders bid $295 million, but the central bank sold $125 million, similar to a prior auction where $356 million was requested.
Governor Johnson Asiama described the exchange rate framework as a “managed floating system,” designed to prevent excessive volatility while allowing market forces to determine the currency’s value.
Analysts expect the cedi to face continued pressure in the short term as import demand remains strong, although robust reserves and supportive monetary policy provide a buffer against extreme swings.
