The Ghana cedi has weakened significantly, falling by 8.4% against the US dollar in the interbank market by May 2026. This represents a substantial drop compared to the 6.6% depreciation seen by April 2025.
Data from the Bank of Ghana's May 2026 Summary of Economic and Financial Data shows the cedi trading at GH¢11.41 to one US dollar. This is a notable change from GH¢10.28 in the same period of the previous year. The currency experienced a sharp depreciation of 4.6% in January 2026. February saw a slight improvement with a 2.2% loss. However, the decline resumed, with 5.0% depreciation in March and 6.6% in April 2026.
This trend places the cedi's performance in the context of broader economic challenges for Ghana. High import demand continues to strain the currency. Foreign exchange supply remains tight, influencing market sentiment. Concerns about the Bank of Ghana's financial health have also played a role.
The Bank of Ghana attributes this weakness to sustained import demand and cautious foreign exchange supply. Market sentiment is also affected by recent concerns regarding the central bank's financial position. These factors align with forecasts from many economic analysts.
Looking ahead, the cedi's performance may see improvement if the International Monetary Fund approves Ghana's sixth review of its Economic Credit Facility program. This approval could signal renewed confidence and bring needed foreign currency into the market. Traders and investors will be closely watching this development.
In contrast to the interbank market, the cedi has shown some resilience in the retail market by May 2026. Forex bureaus report a gain of approximately 1.67% against the US dollar since January 1, 2026. The local currency is currently selling at GH¢12.10 to the US dollar at these bureaus. However, the cedi also weakened against other major currencies. It depreciated by 7.5% against the British pound and the Euro in the interbank market by May 2026.