Traders in Ghana count their cedis with worried expressions. The year is 2026, and Ghana’s currency has become the talk of West Africa, not for its strength, but for its steady fall against the US dollar.
Early May saw the cedi drop to 11.36 against the dollar, marking a year-to-date decline of 10.28% according to Reuters, which relied on London Stock Exchange Group data for its analysis.
The news rippled through the financial world, with predictions of further depreciation due to high demand for foreign exchange, especially from Ghana’s energy sector.
“Ghana’s cedi is being dragged down by persistent corporate foreign-currency demand, particularly from the energy sector,” stated the Reuters report. The trend continued, and by the end of last week, the cedi closed at 11.61 to the dollar.
Out of the nine currencies circulating in West Africa, including the CFA franc used by eight countries, the cedi stood out for all the wrong reasons. It was the worst-performing currency in the region in 2026, and its weak showing placed it alongside the Libyan dinar among Africa’s most fragile currencies.
This downward spiral came even as inflation eased, a positive sign for Ghana’s economy. But for ordinary citizens and businesses, the weakening cedi brought challenges. Prices of goods and services climbed, as importers and traders sought dollars at rates higher than those officially quoted.
Reuters attributed the cedi’s woes to relentless demand for foreign currency from importers and businesses. “The cedi is on a depreciating path due to persistent FX demand, with traders expecting the trend to continue,” the report concluded.
As the cedi’s story unfolded, Ghanaians braced themselves for the uncertain months ahead, hoping for stability in a world where the value of their money seemed to slip further each day.
Source: Apexnewsgh.com