The Ghana cedi continued its downward trajectory against major international currencies over the past two weeks as mounting demand for foreign exchange and increasing corporate repatriation requirements placed renewed pressure on the local currency.
According to the latest market update, the cedi weakened across both the interbank and retail foreign exchange markets, with analysts attributing the depreciation to sustained demand for US dollars amid relatively moderate foreign exchange supply.
In the interbank market, the cedi traded at GHS 11.85 to the US dollar, compared to GHS 11.63 during the previous review period. The local currency also lost ground against the British pound and the euro, with exchange rates rising to GHS 15.85 per pound and GHS 13.66 per euro from GHS 15.62 and GHS 13.49 respectively.
The retail market mirrored the same trend, with the cedi depreciating by 0.81 percent against the US dollar, 1.83 percent against the British pound and 1.40 percent against the euro. The currency closed at average mid-market rates of GHS 12.30 to the dollar, GHS 16.35 to the pound and GHS 14.30 to the euro.
On a month-on-month basis, the cedi recorded an average depreciation of 4.18 percent between April and May 2026, worsening from the 3.23 percent decline registered at the end of April despite substantial intervention by the Bank of Ghana.
The central bank injected approximately $1.1 billion into the foreign exchange market during May in an effort to stabilise the currency. However, analysts said the intervention was insufficient to offset strong demand pressures, with market sentiment remaining largely bearish.
The weakening of the cedi has also been linked to broader global market developments. Rising demand for the US dollar, coupled with central banks liquidating non-dollar assets to finance increasing import costs driven by persistently high refined crude oil prices, has further strengthened the greenback against emerging market currencies.
Despite the current challenges, market observers believe speculation in the foreign exchange market could remain relatively contained following the announcement of a $1.2 billion monthly foreign exchange support programme scheduled for June.
Nevertheless, analysts caution that additional pressure may emerge in the coming weeks as multinational corporations begin repatriating profits and dividends during the second-quarter repatriation season.
“Corporate demand typically peaks during the Q2 repatriation window, driven by multinational dividend and profit outflows,” the report noted, warning that the dollar-cedi exchange rate could weaken beyond the current interbank level of GHS 11.85 unless foreign exchange inflows improve significantly.
