The Ghana cedi depreciated 8.4% against the US dollar in the first five months of 2026, according to the Bank of Ghana’s May 2026 Summary of Economic and Financial Data. The decline is steeper than the 6.6% recorded over the same period in 2025, signalling renewed pressure on the currency despite improvements in key macroeconomic indicators.
BoG data shows the cedi weakened from an average mid‑rate of GH¢10.95 to the dollar in January to GH¢11.4125 by mid‑May. After an early‑year slide of 4.6% in January and a brief recovery in February, the currency resumed a steady downward trend through March, April and May. Unlike the sharp swings seen in 2025, the 2026 pattern has been gradual but persistent.
The depreciation comes despite relatively strong external fundamentals. Ghana posted a US$5.28 billion trade surplus as of April 2026, driven by robust gold and oil export earnings. Gross International Reserves stood at US$14.42 billion in May — equivalent to about six months of import cover. Inflation also eased sharply to 3.4% in April, down from 18.4% a year earlier.
The sustained pressure on the cedi, despite these improvements, suggests that capital outflows, portfolio adjustments and investor sentiment may be exerting greater influence on the foreign exchange market.
If the trend continues, analysts warn it could affect import costs, inflation expectations and business planning in the months ahead.
— CitiNewsRoom
