The Ghanaian cedi, which has suffered a persistent decline in recent weeks, has reportedly become one of the worst-performing currencies in sub-Saharan Africa, raising fresh concerns about the country’s economic stability despite improving macroeconomic indicators.
According to reports and market analyses published by Reuters using data from the London Stock Exchange Group (LSEG), the cedi has experienced a significant year-to-date depreciation in 2026, making it the weakest-performing currency in West Africa.
At the time of the assessment, the cedi had reportedly declined by about 10.28 percent against the US dollar on a year-to-date basis, trading at approximately GH¢11.36 to the dollar. Analysts had warned of further depreciation pressures in the weeks ahead.
“Ghana’s cedi is being dragged down by persistent corporate foreign-currency demand, particularly from the energy sector,” Reuters reported, citing LSEG market data that showed consistent downward pressure on the local currency.
The prediction of continued depreciation appears to have materialised, as the cedi reportedly weakened further to around GH¢11.61 to the US dollar by the close of trading last week, deepening concerns about exchange rate volatility and its impact on inflation and living conditions.
The cedi is one of nine currencies used across West Africa, including the CFA franc, which serves eight countries in the sub-region. However, among these currencies, Ghana’s cedi has reportedly posted the steepest decline in 2026, placing it among some of Africa’s weakest-performing currencies this year.
Economic analysts warn that the sustained depreciation could increase the cost of imports, fuel inflationary pressures, and worsen the burden on businesses dependent on foreign exchange for operations.
Positive Indicators, Weak Currency
The continued weakening of the cedi comes at a time when Ghana has recorded some positive economic indicators, including easing inflationary pressures, improved gross international reserves, and signs of fiscal consolidation following reforms under the IMF-supported programme.
However, the disconnect between macroeconomic improvements and the performance of the cedi continues to spark public concern and market anxiety, especially as the currency’s depreciation directly affects fuel prices, transportation costs, imported goods, and the overall cost of living.
Despite repeated assurances from the Bank of Ghana that measures are being implemented to stabilise the currency, market watchers say persistent dollar demand, external debt obligations, and structural vulnerabilities in Ghana’s import-dependent economy remain major factors driving the cedi’s weakness.
Economists have urged stronger foreign exchange interventions, export diversification, and prudent fiscal discipline to prevent further depreciation and restore investor confidence in the Ghanaian economy.
