The Ghana cedi is expected to trade at GHS 12.30 against the US dollar in the retail market by June 2026. This forecast comes as sustained pressure on the local currency persists, primarily due to high foreign exchange demand.
Elevated energy prices are a major cause of this continued demand for foreign currency. In May 2026, the cedi weakened by 4.6% against the US dollar. This happened because corporate and portfolio-driven foreign exchange demand far exceeded the supply provided by the Bank of Ghana.
This trend fits into Ghana’s broader economic narrative of currency instability and external pressures. The Bank of Ghana’s weekly foreign exchange auctions reveal a significant imbalance. Total demand reached US$3.83 billion, nearly four times the available liquidity. This unmet demand places considerable strain on the cedi.
IC Insights, a prominent economic research firm, highlights the critical role of energy prices. They state, “We foresee continued pressure on the cedi as elevated energy prices sustain FX demand.” This firm also suggests that the rapid pace of depreciation might allow for a correction later in the year.
Looking ahead, decision-makers and markets will closely watch global energy prices and the Bank of Ghana’s intervention strategies. The central bank’s ability to bridge the gap between foreign exchange demand and supply will be crucial. Businesses importing goods, especially energy, will face higher costs. This could lead to increased inflation and affect consumer purchasing power.
Currently, the cedi trades at GHS 12.30 to one US dollar in the retail market. In the interbank market, banks exchange the currency at approximately GHS 11.74 to the dollar. The gap between these rates indicates market stress and potential for further volatility. Maintaining a stable currency is vital for Ghana’s financial health and investor confidence. The persistent depreciation challenges economic planning and growth initiatives.
Ghana’s bond market recently saw increased activity, with turnover rising by 41.76% to GHS 3.53 billion. However, this has not been enough to offset the cedi’s struggle. Foreign Direct Investment (FDI) inflows reached US$2.61 billion in 2025, according to GIPC. While positive, these inflows have not adequately addressed the foreign exchange supply deficit. The government’s efforts to automate tax treaty benefit applications and other tax reforms aim to improve fiscal stability. These measures may indirectly support the cedi in the long term, but immediate pressures remain.