Ghana's cedi depreciated by 8.4% against the US dollar during the first five months of 2026. This rate is higher than the 6.6% depreciation recorded over the same period in 2025.
The Bank of Ghana's (BoG) May 2026 Economic and Financial Summary revealed this weakening trend. The cedi moved from an average mid-rate of GHS 10.95 to the dollar in January to GHS 11.4125 by mid-May 2026. This depreciation occurred despite improvements in several key macroeconomic indicators.
This sustained pressure on the cedi contrasts with Ghana's broader economic performance. The country recorded a trade surplus of GHS 5.28 billion as of April 2026. Strong gold and oil export earnings supported this surplus. Gross International Reserves stood at GHS 14.42 billion in May 2026, providing about six months of import cover. Inflation also eased sharply to 3.4% in April from 18.4% a year earlier.
Market players link the currency pressure to increased demand from energy sector participants. These players seek foreign exchange to finance crude oil imports, finished petroleum products, and payments to power producers. Some also believe the challenge stems from an inadequate dollar supply to meet business demand. The cedi's depreciation pattern in 2026 has been gradual and sustained, unlike the sharp volatility seen in 2025.
Financial experts suggest that factors beyond traditional economic indicators are at play. Capital outflows, portfolio adjustments, and investor sentiment may be driving foreign exchange market dynamics. The currency came under pressure early in the year, recording a year-to-date depreciation of 4.6% in January. It briefly recovered in February but resumed its downward trend in March, continuing through April and May.
If exchange rate pressures persist in the coming months, it could significantly impact the Ghanaian economy. Increased import costs are a direct consequence of a weaker cedi. This situation could also fuel inflation expectations among consumers and businesses. Decision-makers and markets will closely watch the Bank of Ghana's response to these ongoing currency challenges. The stability of the cedi is crucial for economic planning and investor confidence in Ghana.