Ghana's cedi has depreciated by 10.11% against the US dollar on the interbank market since the beginning of the year. This significant decline stems from persistent high demand for foreign exchange.
Over the past fortnight, the cedi closed at an interbank mid-rate of GHS 11.63 to the dollar. It also recorded GHS 15.62 against the British pound and GHS 13.49 against the euro. These figures represent recent losses of 3.01% against the dollar, 1.65% against the pound, and 1.56% against the euro.
This ongoing depreciation impacts Ghana's broader economic stability and import costs. A weaker cedi makes imported goods, including essential commodities and industrial inputs, more expensive. This can fuel inflation, erode purchasing power for ordinary Ghanaians, and increase the cost of servicing foreign debt. Ghana's public debt reached GHS 674.1 billion as of February 2026, underlining the pressure a weaker currency adds.
Database Research noted the cedi’s depreciation exceeded their upper-band forecast of GHS 11.40 against the US dollar. The Bank of Ghana has been cautious about intervening in the forex market. This cautious approach continues even with assurances of a potential US$385 million disbursement from the International Monetary Fund (IMF).
The central bank's restraint likely aims to protect Ghana's foreign reserves. It is waiting for more stable inflows before increasing its foreign exchange intermediation. Strong demand for foreign currency, coupled with limited central bank supply, continues to weigh on the cedi's value.
Looking ahead, financial analysts predict continued pressure on the cedi. Database Research expects the cedi to trade largely on bearish expectations. They forecast a range of GHS 11.35 to GHS 11.86 per US dollar on the interbank market over the next two weeks. This path will depend on the balance between foreign exchange demand and market supply.
The retail market also reflects the cedi's weakening trend. The cedi has already depreciated by 3.07% against the US dollar in two weeks. It also weakened by 1.56% against the pound and 1.49% against the euro in the retail space. It closed at average retail rates of GHS 12.20 to the dollar, GHS 16.05 to the pound, and GHS 14.10 to the euro. The year-to-date retail loss for the cedi against the dollar currently stands at 0.20%, indicating recent rapid declines.
Policymakers will closely monitor these developments. Measures to boost foreign currency inflows or manage demand will be crucial. The stability of the cedi directly affects businesses, consumers, and government finances across Ghana.