Ghana’s cedi has extended its decline in 2026, emerging as the worst-performing currency in sub-Saharan Africa and among the weakest on the continent, despite signs of improving macroeconomic indicators, according to market analyses and currency data.
Recent analyses, including Reuters reports citing data from the London Stock Exchange Group (LSEG), showed the cedi has depreciated sharply against the U.S. dollar this year, driven largely by sustained foreign exchange demand from businesses, particularly players in the energy sector.
The local currency had recorded a year-to-date decline of about 10.28% earlier this month, trading around GHC11.36 to the dollar. However, the downward trend continued, with the cedi closing last week at approximately GHC11.61 to the dollar, further deepening its losses.
“Ghana’s cedi is being dragged down by persistent corporate foreign-currency demand, particularly from the energy sector,” Reuters reported, citing LSEG market data.
The currency’s continued slide has made it the weakest performer among West African currencies so far in 2026. The cedi is one of nine currencies used in the sub-region, alongside the CFA franc, which serves eight West African countries.
The depreciation has raised fresh concerns over the disconnect between Ghana’s improving economic indicators and the behaviour of the local currency.
Inflation has eased significantly in recent months and authorities have repeatedly pointed to broader economic stability measures. However, the cedi’s weakness has persisted, with foreign exchange demand from importers and businesses continuing to place pressure on the market.
The currency’s decline has also contributed to rising costs for imported goods and services, with traders in some segments of the market reportedly dealing at rates above official benchmarks.
Market analysts say persistent demand for dollars and other foreign currencies remains a key factor behind the cedi’s performance, with expectations that pressure on the local currency could continue in the near term.
The development comes as policymakers continue efforts to stabilise the economy and sustain confidence in the country’s financial markets.
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