Cedi depreciates 8.4% against dollar in first five months of 2026

The Bank of Ghana has reported that the Ghana cedi lost 8.4 percent of its value against the US dollar during the first five months of 2026, according to its May 2026 Economic and Financial Summary.

The latest figure exceeds the 6.6 percent depreciation recorded during the same period in 2025, highlighting continued pressure on the local currency despite gains in several macroeconomic indicators.

Data from the central bank showed that the cedi moved from an average mid-rate of 10.95 to the dollar in January to 11.4125 by mid-May 2026.

The currency experienced significant pressure at the start of the year, posting a year-to-date depreciation of 4.6 percent in January before seeing a short-lived recovery in February.

However, the cedi resumed its decline in March and continued to weaken steadily throughout April and May. Unlike the sharp and volatile swings seen in 2025, the depreciation in 2026 has been more gradual but persistent.

The weakening of the cedi comes despite relatively strong external economic indicators. As of April 2026, Ghana posted a trade surplus of 5.28 billion dollars, driven largely by robust gold and crude oil export revenues.

At the same time, Gross International Reserves reached 14.42 billion dollars in May 2026, enough to cover approximately six months of imports, while inflation dropped significantly to 3.4 percent in April from 18.4 percent recorded a year earlier.

According to the report, the continued pressure on the currency despite improved economic conditions points to other factors, including capital outflows, portfolio shifts and investor confidence, as major influences on the foreign exchange market.

The report further warned that if exchange rate pressures continue in the coming months, they could impact import prices, inflation expectations and business operations.