The Ghana cedi depreciated by 9.5% against the US dollar in the interbank market during the first seven months of 2026. This significant weakening was reported in the July 2026 Summary of Economic and Financial Data by the Bank of Ghana.
This depreciation marks a stark reversal from the 40% appreciation recorded in July 2025. In July 2026, the cedi traded at GHS 11.55 to one US dollar, compared to GHS 10.50 during the same period in 2025. This trend highlights persistent challenges in Ghana's foreign exchange market.
The cedi's performance in 2026 has been consistently negative, starting with a 4.6% depreciation in January. It improved slightly in February, losing 2.2% of its value. However, the losing streak resumed with depreciations of 5.0% in March and 6.6% in April. The currency continued to weaken by approximately 8.4% in May, followed by further declines of 10.9% and 7.9% in subsequent months.
This depreciation in the interbank market contrasts with the retail market, where the local currency has gained about 0.50% against the US dollar since January 1, 2026. Currently, the cedi sells at GHS 12.20 to one US dollar at forex bureaus. This divergence suggests different dynamics at play in the wholesale and retail segments of the foreign exchange market.
Databank Research attributes the modest interbank slippage to sustained pressures on derived demand, which is outpacing the policy-anchored foreign exchange supply. This indicates that while the Bank of Ghana may be managing supply, market demand continues to exert downward pressure on the cedi's value. The report also noted the cedi depreciated by 9.5% against the British pound and 7.1% against the Euro in the interbank market in July 2026.
Ghana's economic stability relies heavily on managing its currency's value, especially given its import-dependent economy. A weaker cedi makes imports more expensive, potentially fueling inflation and increasing the cost of living for Ghanaians. Businesses that rely on imported raw materials will face higher operational costs, which could be passed on to consumers.
Despite robust gross reserves, supported by gold and traditional export inflows, Databank Research suggests the government's ambitious target to build roughly 15 months of import cover by 2028 will require stronger reserve accumulation efforts. This strategy may temper the scale of spot market interventions, meaning the central bank might be less inclined to directly intervene to prop up the cedi in the short term.
The Bank of Ghana's monetary policy committee will closely monitor these trends. Future decisions on interest rates and foreign exchange interventions will be crucial in addressing the cedi's depreciation. Investors and businesses will watch for signs of stability or further weakening, which will influence their investment and operational strategies in Ghana.
The government's fiscal policies and efforts to attract foreign direct investment will also play a significant role in bolstering the cedi. Sustained depreciation could undermine confidence in the Ghanaian economy and impact its credit ratings. Addressing the underlying demand-supply imbalances in the foreign exchange market remains a key challenge for policymakers.