Ghana's cedi has stumbled badly in 2026, giving back much of the ground it gained just a year earlier. By late July, the currency was ranked the weakest performer among 17 African currencies tracked by market analysts, a sharp reversal from its standing as one of the continent's best performers in 2025. It's also being called the worst-performing currency in West Africa this year, as depreciation against the US dollar and other major currencies has continued for months.
From Africa's top performer to its weakest currency—Ghana's cedi has staged a stunning reversal in 2026.
The numbers tell the story. Bank of Ghana data show the cedi sliding from about GHS 10.95 per dollar in January to GHS 11.4125 by mid-May, a drop of roughly 8.4%. Market and interbank estimates put the total loss closer to 10.3-10.4% by July and August, with July alone accounting for about 3.1% of monthly depreciation. On the interbank market, the cedi has traded around GHS 11.36-11.41 per dollar in mid-2026. In the retail market, though, the currency has fallen further, changing hands near GHS 12.42 per dollar in August, showing that cash and parallel-market pressures are hitting harder than official rates suggest.
The cedi hasn't just weakened against the dollar. It's lost about 7.5% against both the British pound and the euro year-to-date through mid-May, trading near GHS 15.21 per pound and GHS 13.27 per euro. The Real Effective Exchange Rate, a broader measure of the currency's value against trading partners, stood near 93.5 in April, hinting at wider competitiveness pressures. Amid this slide, the Bank of Ghana has continued to intervene in the foreign exchange market, using its regulatory and monetary policy tools in an effort to stabilize the currency.
This year's slide stands in stark contrast to 2025, when the cedi appreciated from about GHS 14.7 per dollar at the end of 2024 to around GHS 12.5 by the end of 2025, gaining more than 40% on the interbank market. That rally was backed by fiscal consolidation, external financing tied to an IMF-supported program, and rapid disinflation. Reserves also grew, rising from $13.8 billion in December 2025 to about $14.5 billion by February 2026, giving policymakers some cushion.
Investors will likely watch whether Ghana's reserves and fiscal discipline hold steady, and whether the gap between interbank and retail rates narrows in the months ahead.
