The Bank of Ghana has sought to calm market concerns over the cedi’s early-year depreciation, describing the recent movement as normal, short-term and largely driven by seasonal and speculative factors.

Speaking at a press conference after the 128th Monetary Policy Committee (MPC) meeting in Accra on Wednesday, January 28, Governor Dr. Johnson Pandit Asiama said marginal fluctuations in the exchange rate are not unusual, particularly at the start of the year.

“Don’t get worried if you see the cedi moving a little bit. It is normal. Speculative behaviour can move the cedi,” the Governor said, adding that the current pressures are temporary and expected to correct as reforms take hold.

According to data from the Bank of Ghana’s January 2026 Summary of Economic and Financial Data, the cedi has depreciated by about 4 per cent against the US dollar since the start of the year.

The local currency traded at GH¢10.88 to the dollar on the interbank market in January 2026, compared with GH¢10.45 at the end of December 2025.

The weakness has extended to other major currencies, with the cedi losing 4.9 per cent against the British pound and 4.1 per cent against the euro over the same period.

On the interbank market, it traded at GH¢14.77 to the pound and GH¢12.80 to the euro.

Performance across market segments has, however, been mixed.

In the retail market, the cedi hovered around GH¢12.00 to the dollar, reflecting lingering demand pressures. Over the past two weeks, the dollar firmed modestly from GH¢11.90 to GH¢12.15, while the pound and euro strengthened further, closing at about GH¢16.30 and GH¢14.20 respectively.

The January depreciation is being attributed to a combination of seasonal foreign exchange demand, portfolio rebalancing by investors at the beginning of the year, and sensitivity to global financial conditions.

Importantly, the scale of the decline remains modest when viewed against the exceptional performance recorded in 2025.

Last year, the cedi staged one of its strongest turnarounds in recent history. After losing 3.9 per cent in January 2025 and extending losses through February and March, the currency reversed course in April.

By May, it had appreciated by about 43 per cent against the dollar since the start of the year, supported by improved confidence, stronger foreign exchange inflows and tighter coordination between fiscal and monetary policy.

That rally was sustained through the rest of the year, with the cedi closing 2025 with a year-to-date gain of 40.7 per cent.

With the Bank of Ghana maintaining a cautious and forward-looking policy stance, and closely managing foreign exchange expectations, the key question for markets is whether the early-year softness will stabilise in the coming months or be a more durable recalibration after last year’s outsized appreciation.