Cedi Depreciates 3.9% Against Dollar – BoG
The Ghana cedi recorded a 3.9% depreciation against the US dollar on the interbank market in the first quarter of 2026, according to the latest data from the Bank of Ghana.
Figures contained in the central bank’s March 2026 Summary of Economic and Financial Data show that the local currency traded at GH¢10.87 to one US dollar in March 2026, reflecting continued pressures in the formal foreign exchange market.
The depreciation represents a worsening from the 2.2% decline recorded in February, although it remains below the sharper 4.6% depreciation seen in January.
Year-on-Year Strength Masks Recent Pressures
On a year-on-year basis, however, the cedi has shown significant resilience. In March 2025, the currency traded at a much weaker GH¢15.53 to the dollar, indicating a substantial recovery over the past 12 months.
This suggests that while short-term pressures persist, the broader trajectory of the cedi has been one of relative strengthening, supported by improved macroeconomic conditions and external inflows.
Retail Market Shows Gains
Interestingly, conditions in the retail market present a slightly different picture. Since the beginning of 2026, the cedi has appreciated by approximately 4.9% against the US dollar in the retail segment.
It is currently trading at around GH¢11.70 to the dollar, reflecting improved liquidity conditions and stronger foreign exchange inflows in the retail space compared to the interbank market.
Performance Against Other Major Currencies
The cedi also weakened against other major international currencies at the start of the year. In January 2026, it depreciated by 2.8% against the British pound and 1.7% against the euro.
On the interbank market, the currency traded at GH¢14.46 to the pound and GH¢12.49 to the euro, underscoring broader external pressures beyond the US dollar.
Drivers of Recent Movements
Analysts at Databank Group attribute the cedi’s recent relative strength, particularly in the retail market to improved export earnings from key commodities such as gold and crude oil.
Elevated global commodity prices, partly driven by ongoing geopolitical tensions in the Middle East, have boosted foreign exchange inflows into the domestic economy, supporting the currency.
Additionally, improved liquidity conditions in the foreign exchange market have contributed to stabilising the cedi in recent months.
Outlook: Mixed Signals Ahead
Despite these gains, the broader global environment remains uncertain. Heightened geopolitical risks have strengthened the US dollar’s appeal as a safe-haven asset, sustaining global demand for dollar liquidity and exerting pressure on emerging market currencies, including the cedi.
Databank Research projects that near-term support for the cedi will come from stronger commodity export receipts and the central bank’s targeted US$1 billion foreign exchange intervention for March 2026.
However, it cautions that underlying pressures remain.
“Looking ahead, stronger commodity export receipts alongside the Central Bank’s targeted US$1bn FX intervention facility for March should provide near-term support to the cedi. Nonetheless, rising importer-driven FX demand, higher import costs, and persistent global risk aversion are likely to reintroduce depreciation pressures on the currency,” the report noted.
Balancing Stability and Pressure
The latest developments highlight the delicate balance facing Ghana’s currency, supported by improved external inflows and policy interventions, yet exposed to global uncertainties and domestic demand for foreign exchange.
For businesses and investors, the cedi’s trajectory in the coming months will depend largely on the interplay between export performance, central bank interventions, and evolving global economic conditions.
