Global conflicts are partly causing the Ghana cedi to lose value, according to Professor Patrick Asuming. He is an economics lecturer at the University of Ghana. This situation is putting pressure on economies around the world. The cedi's performance is being affected indirectly by these global events.
Professor Asuming pointed to escalating international tensions. These include conflicts involving the United States and Iran. The ongoing war between Russia and Ukraine also plays a role. Global instability often makes investors move their money to safer assets. These are typically stronger currencies. This creates extra challenges for currencies in emerging markets like Ghana's cedi.
This situation fits into a larger picture of economic uncertainty. Since 2026, global events have caused trade disruptions. These include issues with oil supply. Ghana's economy is not separate from these global effects. The Bank of Ghana has worked to manage the currency's swings. This has kept the depreciation at a manageable level.
These comments follow reports of the cedi's steady decline throughout 2026. Data from the London Stock Exchange Group (LSEG) showed the cedi as the worst-performing currency in West Africa for the year up to May 25, 2026. Strong demand for the US dollar, especially from the energy sector, is a key reason. Rising oil prices and backlogs in foreign exchange trading also weigh heavily on the cedi.
Professor Asuming noted that while the cedi has depreciated compared to its appreciation last year, extreme volatility has not been witnessed. He stated that the Bank of Ghana has successfully moderated the swings. The depreciation has been kept at a manageable level. This means there is no immediate cause for alarm.