Cedi loses 7.11% against dollar as BoG flags demand pressures
The decline through August contrasts with a 28.95% gain over the same period last year. The Bank of Ghana says seasonal demand from energy and commerce could put further pressure on the currency.
The cedi lost 7.11% of its value against the US dollar on the interbank market from the start of 2026 through August, according to the Bank of Ghana’s September Monetary Policy Report.
The central bank also warned that seasonal demand for foreign currency from the energy and commerce sectors could weigh on the cedi in the months ahead.
The decline marks a reversal from the same period in 2025, when the currency appreciated by 28.95% against the dollar.
The cedi also weakened against the British pound and the euro through August, losing 7.78% and 6.09%, respectively. Over the corresponding period last year, it gained 19.49% against the pound and 14.08% against the euro.
The figures describe the cumulative movement since the beginning of the year, rather than a fall during August alone. They relate to the interbank market and do not establish the rates available to customers at forex bureaux or other retail outlets.
Despite the losses, the central bank said the cedi was less volatile during the first 185 transaction days of 2026 than over comparable periods in the previous four years.
That distinction means the currency weakened overall while experiencing smaller fluctuations.
The report said reduced demand pressures and central bank support helped contain pressure on the local foreign exchange market in August.
“On the local FX market, pressures on the cedi were muted in August 2026 due to moderated demand pressures and BoG’s support to the market,” it said.
However, the bank cautioned that demand could increase.
“In the outlook, seasonal demand pressures coming from energy and commerce sectors may weigh on the cedi,” the report added.
Broader measures tracking the cedi against the currencies of Ghana’s trading partners also showed depreciation.
On a nominal trade-weighted basis, the currency fell by 6.80% through August. A separate measure weighted by foreign exchange transactions recorded a 7.58% decline.
These compared with gains of 14.22% and 21.60%, respectively, over the same period in 2025.
Measures adjusted for relative price movements showed a similar direction. In real bilateral terms, the cedi depreciated by 8.47% against the dollar, 8.15% against the pound and 6.97% against the euro.
The bank’s outlook points to demand from energy and commerce as a potential source of renewed pressure, even after the comparatively subdued market conditions it reported for August.