The Ghana cedi has weakened against major foreign currencies. It slipped against the US dollar, British pound, and euro in both the interbank and retail markets. This weakening occurred over the last two weeks.
In the interbank market, the cedi lost 1.64% against the dollar. It now trades at GHS 11.28 to one dollar. The cedi also dropped 2.46% against the pound, trading at GHS 15.36. It fell 2.15% against the euro, reaching GHS 13.28. In the retail market, the cedi weakened by 0.84% against the dollar. It is now GHS 11.83 to one dollar. Losses against the pound and euro were also seen in this market. These changes reflect ongoing market dynamics for foreign exchange.
The cedi's performance aligns with predictions. Analysts point to steady import demand and cautious foreign exchange supply. Concerns about the Bank of Ghana's financial position also played a role. The year-to-date depreciation of the cedi stood at an average of 7.8% by May 8, 2026. This is higher than the 2.5% recorded over the same period last year. This trend highlights increased pressure on the local currency compared to the previous year.
Databank Research noted the cedi's performance is in line with their forecasts. They believe strong reserve buffers will support a recovery. Anticipation of the International Monetary Fund's (IMF) approval for a US$385 million Extended Credit Facility is also a key factor. This approval should boost foreign exchange reserves. "Overall, we maintain our view of contained volatility," Databank stated. They expect the cedi to trade within GHS 10.95 to GHS 11.35 against the dollar in the coming two weeks.
Currently, forex bureaus are selling one US dollar for GHS 11.90. The cedi's year-to-date appreciation in the retail market was 2.53%. Market watchers will monitor foreign exchange supply and the IMF deal. These factors will significantly influence the cedi's stability. The Bank of Ghana's actions to manage forex reserves are also crucial. Further depreciation could increase import costs and fuel inflation.