- Cedi Weakens to GH¢11.55 Against Dollar by Mid-July – BoG Report
The Ghana cedi depreciated by 9.50% against the US dollar during the first seven months of 2026, reversing part of the substantial gains recorded by the domestic currency in the previous year.
The Bank of Ghana’s July 2026 Summary of Economic and Financial Data showed that the cedi was trading at GH¢11.55 to US$1 as of July 17, compared with GH¢10.45 at the end of December 2025.
The depreciation marks a shift from the cedi’s performance in 2025, when it appreciated by 40.70% against the dollar following a period of improved foreign-exchange liquidity and stronger investor confidence.
The latest data indicate that the domestic currency has come under renewed pressure since the beginning of 2026, although the pace of depreciation has not been uniform throughout the year.
The cedi opened January at GH¢10.95 to the dollar before strengthening marginally to GH¢10.69 in February. It subsequently weakened to GH¢11.00 in March, GH¢11.19 in April and GH¢11.73 in May.
The currency recovered slightly to GH¢11.35 in June before weakening again to GH¢11.55 by the middle of July.
The year-to-date depreciation reflects the change in the exchange rate relative to its December 2025 closing level. It means that more cedis were required in July to purchase one US dollar than at the start of the year.
The cedi recorded a similar 9.50% depreciation against the British pound, trading at GH¢15.53 to £1 by July 17. This compared with GH¢14.06 at the end of December 2025.
Against the euro, the domestic currency depreciated by 7.10%, with the exchange rate moving from GH¢12.27 at the end of 2025 to GH¢13.21 in July 2026.
The figures show that the weakening of the cedi was not limited to the US dollar but extended across Ghana’s three principal trading currencies.
The depreciation occurred despite Ghana recording strong external-sector balances during the first half of the year. Total exports reached US$18.29 billion by June 2026, while imports amounted to US$9.48 billion, producing a trade surplus of US$8.81 billion.
Gold exports remained the largest source of merchandise export earnings, generating US$12.50 billion. Cocoa exports contributed US$2.29 billion, while oil exports amounted to US$1.71 billion.
Ordinarily, a large trade surplus should support foreign-exchange supply by increasing the amount of export proceeds flowing into the economy. However, the exchange-rate data suggest that other demand and supply conditions continued to influence the currency market.
The Bank of Ghana report does not provide a direct explanation for the cedi’s depreciation. The movement may nevertheless reflect the interaction of foreign-exchange demand for imports, debt-service obligations, corporate payments, portfolio transactions and the timing of export proceeds.
Gross international reserves also declined during the second quarter of the year. Reserves fell from US$14.16 billion in March to US$12.94 billion in June, although they still provided about five months of import cover.
The decline in reserves does not automatically indicate that the central bank used the full amount to support the currency, but it highlights the importance of sustaining foreign-exchange inflows while meeting the country’s external obligations.
The cedi’s performance has direct consequences for inflation, businesses and household expenditure. A weaker currency raises the local cost of imported fuel, machinery, pharmaceuticals, food products and industrial inputs.
Businesses that depend heavily on imported goods may face higher replacement costs, potentially leading to higher prices for consumers or reduced profit margins.
Exchange-rate pressure is particularly significant because inflation increased from 3.70% in May to 5.30% in June 2026. Non-food inflation rose more sharply to 6.30%, compared with food inflation of 3.90%.
Although the inflation rate remained relatively low, continued cedi depreciation could create additional price pressures if businesses pass higher import costs to consumers.
The currency’s decline could also affect the cost of servicing foreign-currency obligations. Government, companies and individuals with liabilities denominated in dollars, pounds or euros may require more cedis to meet those obligations.
Exporters, however, may benefit from receiving more cedis when their foreign-currency earnings are converted into the domestic currency. The overall benefit to the economy will depend on whether export revenues are retained and converted locally and whether imported production costs rise at a slower rate.
The cedi’s movement through the first seven months of 2026 remains moderate compared with periods of severe currency instability experienced in previous years. However, the reversal from the sharp appreciation recorded in 2025 will require close attention from policymakers and businesses.
The key challenge will be to ensure that the depreciation remains orderly and does not trigger a broader cycle of inflation expectations, speculative foreign-exchange demand and price increases.
Maintaining confidence in the cedi will depend on continued export growth, strong reserve accumulation, disciplined fiscal management and predictable foreign-exchange market interventions.
The exchange-rate position as of July therefore presents a mixed picture. Ghana continues to benefit from strong export earnings and a substantial trade surplus, but the cedi has weakened against all three major currencies since the beginning of the year.
The 9.50% depreciation against both the dollar and the pound, together with the 7.10% decline against the euro, signals that the currency gains of 2025 have not been fully sustained.
