The Ghana cedi has opened 2026 on a weaker footing, depreciating by about 4 per cent on average against major international currencies amid renewed foreign exchange demand and early-year market adjustments.
According to the Bank of Ghana’s (BoG) January 2026 Summary of Economic and Financial Data, the cedi traded at GH¢10.88 to the US dollar on the interbank market, compared with GH¢10.45 at the close of December 2025, representing a 4 per cent depreciation over the period.
Performance Against Major Currencies
• US dollar: GH¢10.88 (from GH¢10.45)
• British pound: GH¢14.77, reflecting a 4.9 per cent loss
• Euro: GH¢12.80, a 4.1 per cent depreciation
The local currency also showed mixed outcomes across market segments. In the retail foreign exchange market, the cedi traded weaker at around GH¢12.00 to the dollar, as demand pressures persisted at the start of the year.
Over the same period, retail quotes showed the dollar edging from GH¢11.90 to GH¢12.15, while the pound and euro strengthened, closing at approximately GH¢16.30 and GH¢14.20 respectively.
Drivers of the Early-Year Weakness
Analysts attribute the January depreciation to a combination of:
• Seasonal foreign exchange demand, typical at the start of the year
• Portfolio rebalancing by investors
• Sensitivity to global financial and monetary conditions
Despite the pullback, the Bank of Ghana notes that the magnitude of the depreciation remains modest, especially when viewed against the backdrop of the cedi’s exceptional performance in 2025.
Contrast With 2025 Rally
The current trend contrasts sharply with developments last year. After declining 3.9 per cent in January 2025 and extending losses into February and March, the cedi staged a strong recovery from April.
By May 2025, the currency had appreciated by about 43 per cent against the US dollar, supported by improved market confidence, stronger foreign exchange inflows, and tighter policy coordination. The rally was sustained through the remainder of the year, with the cedi closing 2025 up 40.7 per cent year-to-date.
With the Bank of Ghana maintaining a cautious policy stance and closely monitoring foreign exchange expectations, market watchers say the coming months will be critical in determining whether the early-2026 weakness stabilises or signals a broader adjustment following last year’s outsized gains.
Source: Africa Publicity
