Ghana’s currency has come under renewed pressure at the start of 2026, raising concerns among businesses and households, even as the Bank of Ghana insists the latest depreciation is temporary and manageable.
Speaking at the 128th Monetary Policy Committee (MPC) press conference in Accra on Wednesday, January 28, the Governor of the Bank of Ghana, Dr. Johnson Asiama, sought to calm public anxiety over the cedi’s recent slide, describing the movement as a short-term adjustment driven largely by speculative activity.
According to Dr. Asiama, modest fluctuations in the exchange rate are normal in an open market system, particularly during periods of heightened foreign exchange demand.
> “People should not panic when the cedi moves slightly. Speculative behaviour can influence the currency in the short term, but these pressures tend to correct themselves,” he stated, adding that several policy reforms have already been rolled out to support stability.
Data Confirms Renewed Weakness
Despite the reassurance, fresh figures from the Bank of Ghana’s Economic and Financial Data for January 2026 indicate that the cedi has indeed lost ground against major international currencies in the opening weeks of the year.
On the interbank market, the local currency traded at GH¢10.88 to the US dollar, compared to GH¢10.45 at the end of December 2025, reflecting a depreciation of roughly 4 per cent. The trend extended beyond the dollar, with the cedi also weakening by 4.9 per cent against the British pound and 4.1 per cent against the euro, trading at GH¢14.77 and GH¢12.80 respectively.
The retail segment of the foreign exchange market mirrored these pressures, with the dollar exchanging at around GH¢12.00, highlighting sustained demand from importers and consumers. While the dollar moved within a relatively narrow range during the period, both the pound and the euro posted stronger gains, closing near GH¢16.30 and GH¢14.20 respectively.
Why the Cedi Is Under Pressure
Market analysts attribute the January depreciation to a mix of seasonal demand factors and portfolio rebalancing that typically characterise the beginning of the year. Increased demand for foreign currency to finance imports, settle external obligations and reposition investment portfolios has historically placed short-term stress on the cedi.
Additionally, global financial conditions remain a critical influence. Shifts in interest rate expectations in advanced economies and cautious investor sentiment across emerging markets continue to affect capital flows, making currencies like the cedi particularly sensitive to external shocks.
Nonetheless, analysts note that the scale of the recent decline remains relatively contained and does not suggest a return to the prolonged instability seen in earlier years.
A Stark Contrast With 2025’s Performance
The early-year weakness stands in sharp contrast to the cedi’s remarkable performance in 2025, a year that marked one of the strongest rebounds in the currency’s recent history.
After opening 2025 with a depreciation of 3.9 per cent in January, followed by further losses in February and March, the cedi staged an unexpected turnaround in the second quarter. From April onwards, improved investor confidence, stronger foreign exchange inflows and tighter coordination between fiscal and monetary authorities drove a sustained recovery.
By May 2025, the cedi had appreciated by approximately 43 per cent against the US dollar compared to its level at the start of the year. That momentum was largely maintained through the remaining months, allowing the currency to end 2025 with a year-to-date gain of 40.7 per cent.
Outlook: Cautious Optimism
While the January 2026 data highlight renewed pressure, policymakers remain cautiously optimistic. The central bank maintains that recent reforms, combined with continued policy discipline and improved foreign exchange management, should help anchor expectations and limit excessive volatility.
For now, analysts advise close monitoring rather than alarm, noting that short-term fluctuations are not unusual at the start of the year. The key test, they argue, will be whether confidence-driven inflows and policy coordination can once again steady the cedi in the months ahead.
