The Ghana cedi depreciated by 9.50% against the US dollar during the first seven months of 2026. The Bank of Ghana’s July 2026 report indicates the cedi was trading at GHS 11.55 to US$1 as of July 17. This compares to GHS 10.45 at the end of December 2025.
This depreciation reverses part of the substantial gains recorded by the domestic currency in the previous year. In 2025, the cedi appreciated by 40.70% against the dollar due to improved foreign-exchange liquidity and stronger investor confidence. The latest data show renewed pressure on the currency since the beginning of 2026.
The cedi’s weakening is a significant development in Ghana’s economic landscape, impacting various sectors. This trend suggests underlying challenges in managing foreign exchange demand and supply, despite positive external sector balances. The currency’s performance is a key indicator of economic stability and investor sentiment in the country.
The Bank of Ghana’s July 2026 Summary of Economic and Financial Data provided these figures. The report does not offer a direct explanation for the depreciation. However, it highlights the interaction of foreign-exchange demand for imports, debt-service obligations, and corporate payments.
This depreciation has direct consequences for inflation, businesses, and household expenditure. A weaker currency increases the local cost of imported goods like fuel, machinery, and pharmaceuticals. Decision-makers will closely monitor these impacts, especially given the recent rise in inflation.
The cedi also recorded a similar 9.50% depreciation against the British pound, trading at GHS 15.53 to £1 by July 17. This compares with GHS 14.06 at the end of December 2025. Against the euro, the domestic currency depreciated by 7.10%, moving from GHS 12.27 at the end of 2025 to GHS 13.21 in July 2026. These figures show that the weakening was not limited to the US dollar but extended across Ghana’s three principal trading currencies.
The depreciation occurred despite Ghana recording strong external-sector balances during the first half of the year. Total exports reached US$18.29 billion by June 2026, while imports amounted to US$9.48 billion. This produced a trade surplus of US$8.81 billion. Gold exports remained the largest source of merchandise export earnings, generating US$12.50 billion. Cocoa exports contributed US$2.29 billion, while oil exports amounted to US$1.71 billion.
Ordinarily, a large trade surplus should support foreign-exchange supply by increasing export proceeds. However, the exchange-rate data suggest that other demand and supply conditions continued to influence the currency market. Gross international reserves also declined during the second quarter of the year. Reserves fell from US$14.16 billion in March to US$12.94 billion in June, although they still provided about five months of import cover. This decline highlights the importance of sustaining foreign-exchange inflows.
Businesses that depend heavily on imported goods may face higher replacement costs. This could lead to higher prices for consumers or reduced profit margins. Exchange-rate pressure is particularly significant because inflation increased from 3.70% in May to 5.30% in June 2026. Non-food inflation rose more sharply to 6.30%, compared with food inflation of 3.90%. Continued cedi depreciation could create additional price pressures if businesses pass higher import costs to consumers.
The currency’s decline could also affect the cost of servicing foreign-currency obligations. Government, companies, and individuals with liabilities in dollars, pounds, or euros may require more cedis to meet those obligations. Exporters, however, may benefit from receiving more cedis when their foreign-currency earnings are converted locally. The overall economic benefit depends on whether export revenues are retained and converted locally, and if imported production costs rise at a slower rate.