The Ghana cedi's depreciation against the US dollar has widened to 9.5% in the first nine months of 2026, marking a sharp reversal from the currency's strong performance a year earlier. According to the Bank of Ghana, the cedi is trading at about GH¢11.55 to the US dollar in September, compared with GH¢10.45 at the end of December 2025. This significant depreciation has raised concerns about the potential impact on the country's economy.
The cedi has also weakened against other major currencies, recording year-to-date depreciations of 9.0% and 7.3% against the pound and euro, respectively. This development follows a period of relative improvement in August, when the cedi's year-to-date depreciation against the dollar narrowed to about 7.1%. The currency had strengthened to around GH¢10.95 to the dollar earlier in August before renewed pressure pushed it higher.
The depreciation represents a reversal of the cedi's performance in 2025, when it recorded substantial gains against the dollar. Bank of Ghana data show the currency ended 2025 at GH¢10.45 to the US dollar, compared with GH¢15.30 at the beginning of the year. The strong performance of the cedi in 2025 was attributed to various factors, including improved export earnings and increased foreign investment.
The World Bank has identified increased foreign-exchange demand from the energy sector and dividend payments by some private corporations as factors contributing to pressure on the cedi. At the same time, Ghana has continued to benefit from strong export earnings and improved external balances, indicating that foreign-exchange supply alone has not eliminated pressures arising from demand.
The Bank of Ghana has described recent exchange-rate movements within the context of a flexible, market-determined exchange-rate regime. The central bank introduced a new Foreign Exchange Operations Framework in September to clarify the objectives and principles guiding its interventions while maintaining its inflation-targeting mandate. This framework aims to provide a more transparent and predictable approach to foreign exchange management.
The renewed weakness of the cedi comes as the Bank continues to manage competing pressures in the foreign-exchange market, including demand from businesses and other market participants. The September data therefore point to a more challenging currency environment after the gains recorded in 2025, even as Ghana's broader macroeconomic indicators continue to show signs of stabilisation.
Despite the challenges facing the cedi, Ghana's macroeconomic indicators suggest that the country's economy is stabilising. The Bank of Ghana's efforts to manage the foreign exchange market and maintain price stability are crucial in addressing the current depreciation of the cedi. Going forward, the cedi's performance is likely to be influenced by various factors, including global economic trends and domestic economic developments.
Key points
- The cedi's depreciation is attributed to increased foreign-exchange demand from the energy sector and dividend payments by some private corporations.
- The Bank of Ghana has introduced a new Foreign Exchange Operations Framework to guide its interventions in the foreign exchange market.
- Ghana's broader macroeconomic indicators continue to show signs of stabilisation despite the challenges facing the cedi.
