Ghana Cedi Extends Mild Correction, Weakening Across Major Trading Pairs

• The Ghana cedi depreciated 1.64% against the dollar to GH¢11.28 in the interbank market.
• The local currency lost 2.46% against the pound to GH¢15.36 and 2.15% against the euro to trade at GH¢13.28.
• The year-to-date depreciation averaged 7.8% against all major foreign currencies as of May 8, 2026.
• Databank Research expects the cedi to remain steady within a GH¢10.95-11.35 to a US dollar range by the close of the next fortnight.

The Ghana cedi has extended its mild correction over the past two weeks, weakening across major trading pairs in both interbank and retail markets. This development has led to a depreciation of the local currency against the dollar, pound, and euro in the interbank market.

The cedi depreciated 1.64% against the dollar to GH¢11.28, losing 2.46% against the pound to GH¢15.36 and 2.15% against the euro to trade at GH¢13.28. In the retail market, the local currency slipped 0.84% against the dollar to GH¢11.83, recording marginal losses against the pound and euro to sell at GH¢15.80 and GH¢13.75 respectively.

Year-to-Date Performance

The year-to-date depreciation averaged 7.8% against all major foreign currencies as of May 8, 2026, compared to 2.5% over the same period last year. This significant depreciation has raised concerns among investors and economists, who are closely monitoring the situation.

Databank Research stated that the performance of the cedi is broadly in line with its forecast, attributing the depreciation to sustained import demand and cautious FX supply conditions. The research firm also pointed out that recent financial position concerns of the Bank of Ghana have further influenced sentiment.

Expectations of a Rebound

Despite the current depreciation, Databank Research remains optimistic about the prospects of a rebound. The firm expects strong reserve buffers and anticipated International Monetary Fund (IMF) approval of the US$385 million Extended Credit Facility (ECF) to create room for stronger foreign exchange support.

According to Databank Research, expectations of a rebound remain anchored on the aforementioned factors, which should lead to contained volatility in the currency market. The firm expects the cedi to remain steady within a GH¢10.95-11.35 to a US dollar range by the close of the next fortnight.

Recent Developments

The local currency began this week going for GH¢11.90 to one dollar at the forex bureaus. Its year-to-date appreciation stood at 2.53% in the retail market, indicating a slight improvement in the currency's performance.

However, the recent depreciation has raised concerns about the country's economic stability and the impact of the IMF's approval on the currency market. The situation is closely being monitored by investors, economists, and policymakers.

Looking Ahead

The Ghana cedi's performance will continue to be influenced by various factors, including import demand, FX supply conditions, and the IMF's approval of the ECF. The country's economic stability and the currency's value will depend on the successful implementation of the government's economic policies and the IMF's support.