The Ghanaian cedi has weakened further against the US dollar. It now trades at GHS 12.40 to one dollar at forex bureaus. This marks a continued slide for the local currency.
Demand for foreign exchange is high. Importers need dollars to pay for goods. Multinational companies are also expected to send profits overseas. These factors are increasing pressure on the cedi. The Bank of Ghana (BoG) injected US$1.1 billion into the forex market in May 2026. This intervention aimed to stabilize the currency. However, the cedi's decline persists.
The cedi has been under pressure for some time. In the interbank market, the dollar cost rose to GHS 11.85. This is up from GHS 11.63. The pound and euro also strengthened against the cedi. Prices for these currencies increased to GHS 15.85 and GHS 13.66 respectively. During May 2026, the cedi depreciated by an average of 4.18% month-on-month. This is a faster rate than the 3.23% seen in April 2026. These figures show a clear trend of depreciation.
Databank Research explained the situation. They noted strong demand and moderate forex supply. Higher import costs, especially for refined crude oil, are a major driver. Central banks are selling non-dollar assets to meet these costs. This increases the demand for dollars globally. Databank Research expects speculation to remain somewhat controlled. The BoG has promised US$1.2 billion in forex support for June 2026. However, they anticipate the USD/GHS rate to move above GHS 11.85 in the interbank market. This is due to expected dividend and profit outflows from companies.
The currency's weakening has significant economic implications. It makes imports more expensive for Ghanaian businesses and consumers. This can lead to higher inflation. For businesses that export, it might make their products cheaper abroad. However, the immediate concern is the rising cost of living due to imported goods. Investors will watch to see if the BoG's future interventions can provide lasting stability. The upcoming quarterly profit repatriation window will be a key test for the cedi. Decisions by policymakers will likely focus on managing import demand and boosting forex reserves.