Ghana's cedi weakened by 1.64% against the US dollar in the interbank market, reaching GHS 11.28. This decline occurred over the past two weeks. The local currency also depreciated against other major foreign currencies.
The cedi fell 2.46% against the British pound, trading at GHS 15.36. It also declined 2.15% against the euro, reaching GHS 13.28 in the interbank market. In the retail market, the cedi weakened 0.84% against the dollar to GHS 11.83. It also recorded slight losses against the pound and euro, trading at GHS 15.80 and GHS 13.75, respectively.
This recent currency performance aligns with broader economic trends in Ghana. The country faces persistent import demand pressures. Supply of foreign exchange (forex) remains cautious. These factors collectively contribute to the cedi's weakening against international currencies. The sentiment is further influenced by recent financial concerns surrounding the Bank of Ghana.
As of May 8, 2026, the cedi's average year-to-date depreciation against major foreign currencies stood at 7.8%. This marks a significant increase from 2.5% during the same period in 2025. This highlights a heightened period of currency instability within the Ghanaian economy.
Databank Research attributes the cedi's recent performance to a combination of factors. A spokesperson stated, “We believe this reflects a mix of sustained import demand and cautious FX supply conditions, with sentiment further influenced by recent financial position concerns of the Bank of Ghana.” Databank, however, anticipates a recovery in the cedi's value. This recovery is expected due to strong foreign reserve buffers. The anticipated approval of the International Monetary Fund’s (IMF) US$385 million Extended Credit Facility (ECF) will also provide support. This ECF is predicted to improve Ghana's foreign exchange support.
Looking ahead, the cedi's trajectory will be closely watched by markets and decision-makers alike. The inflow of the IMF ECF will be a critical factor. It could stabilize the currency and boost investor confidence. Databank maintains a view of contained volatility, predicting the cedi will remain within a GHS 10.95-11.35 to a US dollar range by the close of the next fortnight. This suggests that while near-term fluctuations are possible, a significant market shift is not immediately foreseen. The cedi opened this week selling at GHS 11.90 to the dollar at forex bureaus. Despite recent losses, the local currency still recorded a year-to-date appreciation of 2.53% in the retail market, indicating some resilience over a longer period.