The Ghana cedi depreciated by 8.4 percent against the US dollar during the first five months of 2026, according to the Bank of Ghana’s May 2026 Economic and Financial Summary.
The decline exceeds the 6.6 percent depreciation recorded during the same period in 2025, highlighting renewed pressure on the local currency despite improvements in key macroeconomic indicators.
Bank of Ghana data showed that the cedi weakened from an average mid-rate of GH¢10.95 to the dollar in January to GH¢11.4125 by mid-May 2026.
The local currency came under pressure at the start of the year, recording a year-to-date depreciation of 4.6 percent in January before posting a brief recovery in February. However, the cedi resumed its downward trend in March and continued to weaken steadily through April and May.
Unlike the sharp and volatile swings experienced in 2025, this year’s depreciation has been more gradual and sustained.
The cedi’s performance comes despite relatively strong external sector indicators. Ghana recorded a trade surplus of US$5.28 billion as of April 2026, supported by robust gold and oil export earnings.
Gross International Reserves stood at US$14.42 billion in May 2026, equivalent to about six months of import cover. Inflation also eased significantly to 3.4 percent in April 2026, down from 18.4 percent during the same period last year.
Analysts say the continued pressure on the cedi, despite improving macroeconomic conditions, suggests that factors such as capital outflows, portfolio rebalancing and investor sentiment are increasingly influencing foreign exchange market dynamics.
Economists warn that if exchange rate pressures persist in the coming months, the depreciation could raise import costs, affect inflation expectations and complicate business planning.
Source: www.kumasimail.com
