Cedi Depreciates 4.0% to Dollar in January 2026 – BoG
By Praisebell Rosemond Larbi
The Ghana cedi depreciated by 4.0% against the US dollar in January 2026, marking a weak start to the year after a strong recovery in 2025, according to the Bank of Ghana’s (BoG) January 2026 Summary of Economic and Financial Data.
Data from the central bank showed that the cedi traded at an average interbank rate of GH¢10.88 to the US dollar in January 2026, compared with GH¢10.45 in December 2025. The movement reflects renewed demand pressures in the foreign exchange market, typically observed at the beginning of the year due to import financing, profit repatriation, and corporate FX settlements.
In the retail market, the local currency weakened further, selling at about GH¢12.00 to one American greenback, highlighting the persistent gap between interbank and forex bureau rates.
The January depreciation comes after a volatile but largely positive performance in 2025. The cedi began 2025 on a weak footing, losing 3.9% in January, with the depreciation trend extending into February and March. However, the slide was arrested in April 2025, paving the way for a dramatic turnaround later in the year.
By May 2025, the cedi had staged a remarkable rebound, gaining about 43% in value against the US dollar since the beginning of the year, driven by tight monetary policy, improved FX inflows, strong export receipts, and renewed investor confidence. The rally was sustained through the remainder of the year, with the cedi ending 2025 with a year-to-date appreciation of 40.7%, one of its strongest annual performances in recent history.
Against other major currencies, the local unit also came under pressure in January 2026. The cedi depreciated by 4.9% against the British pound and 4.1% against the euro, trading at GH¢14.77 to the pound and GH¢12.80 to the euro in the interbank market.
Beyond the monthly performance, the currency recorded mixed movements over the most recent two-week review period. During this period, the cedi weakened slightly in the interbank market, with the US dollar closing at a midrate of GH¢10.88, up from GH¢10.70 previously.
However, the pound and euro eased by 2.70% and 2.57%, respectively, closing at GH¢14.78 and GH¢12.80, reflecting shifting demand patterns and relative currency movements in global markets.
In contrast, retail market dynamics told a different story. The dollar firmed modestly against the cedi, strengthening to GH¢11.90 from GH¢12.15, while the pound and euro gained 1.58% and 2.18%, closing at GH¢15.80 and GH¢13.75, respectively.
Analysts note that the divergence between interbank and retail rates underscores differences in liquidity conditions and speculative behaviour, while outlook for the cedi will depend largely on FX inflows, central bank interventions, export performance, and global dollar trends in the weeks ahead.
