The Ghana cedi depreciated by 8.4% against the US dollar during the first five months of 2026, according to the May 2026 Economic and Financial Summary released by the Bank of Ghana.

The latest decline is higher than the 6.6% depreciation recorded over the same period in 2025.

It signals renewed pressure on the local currency despite improvements in several key macroeconomic indicators.

Per the Bank of Ghana data, the cedi weakened from an average mid-rate of 10.95 to the dollar in January to 11.4125 by mid-May 2026.

The currency came under pressure early in the year, recording a year-to-date depreciation of 4.6 percent in January before briefly recovering in February.

However, the cedi resumed its downward trend in March and continued weakening steadily through April and May.

Unlike the sharp volatility witnessed in 2025, the 2026 depreciation pattern has been more gradual and sustained.

The cedi’s decline comes despite relatively strong external fundamentals.

Ghana recorded a trade surplus of 5.28 billion dollars as of April 2026, supported by strong gold and oil export earnings.

Gross International Reserves also stood at $14.42 billion May 2026, equivalent to about six months of import cover, while inflation eased sharply to 3.4 percent in April from 18.4 percent a year earlier.

The sustained pressure on the currency despite improving macroeconomic conditions suggests that factors such as capital outflows, portfolio adjustments and investor sentiment may be playing a bigger role in driving foreign exchange market dynamics.

If exchange rate pressures persist over the coming months, it could affect import costs, inflation expectations and business planning.