Ghana’s cedi came under renewed pressure in recent weeks, weakening against major trading currencies as seasonal corporate foreign exchange outflows and elevated import demand weighed on the local currency, market data showed.
The cedi depreciated across both the interbank and retail markets over the two-week review period, reflecting sustained demand for US dollars, pounds and euros amid a tighter FX supply environment and rising external payment obligations.
On the interbank market, the dollar edged up to 11.85 cedis from 11.63 cedis, while the British pound rose to 15.85 cedis from 15.62 cedis and the euro increased to 13.66 cedis from 13.49 cedis, according to market figures. In the retail market, the cedi lost between 0.81 percent and 1.83 percent against the three major currencies, closing at average rates of 12.30 cedis to the dollar, 16.35 to the pound and 14.30 to the euro.
On a monthly basis, the currency depreciated by an average of about 4.18 percent between April and May 2026, a 0.95 percentage point increase from the 3.23 percent recorded at the end of April, underscoring persistent pressure in the foreign exchange market.
Analysts attributed the weakness largely to heightened foreign exchange demand linked to the second-quarter corporate repatriation window, when multinational companies typically convert local earnings into foreign currency for dividend payments, profit repatriation and external debt servicing.
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The seasonal outflows have coincided with increased demand for imported goods, particularly refined petroleum products, which have become more expensive due to elevated global crude oil prices. The higher import bill has further increased pressure on dollar demand in the domestic market.
Although the Bank of Ghana reportedly intervened heavily in the market, injecting about 1.1 billion dollars in May 2026, this has not fully offset demand pressures. Market participants say FX supply conditions remain tight despite continued central bank support.
The cedi’s trajectory has also been influenced by broader global factors, including cautious investor sentiment and higher commodity prices, which have strengthened the US dollar and reduced appetite for emerging-market currencies.
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In response, authorities have announced continued FX support measures, including an estimated 1.2 billion dollars in monthly interventions for June, aimed at stabilising the currency and smoothing volatility in the short term.
However, analysts expect the cedi to remain under pressure in the coming weeks, with the USD/GHS pair likely to test levels beyond 11.85 in the interbank market if corporate demand persists at current levels.
They note that while intervention measures may help moderate sharp swings, structural demand pressures — including import dependency and periodic profit repatriation — continue to shape the currency’s outlook.
The Bank of Ghana has repeatedly said it will maintain a presence in the market to ensure orderly conditions and prevent excessive volatility, even as it balances inflation control and reserve adequacy concerns.
Economists say the medium-term outlook will depend on the strength of export inflows, especially from cocoa, gold and oil, as well as the sustainability of foreign exchange interventions.
For now, traders say sentiment remains cautious, with many market players expecting continued volatility as the second-quarter repatriation cycle runs its course.
