The Ghana cedi experienced a downward slide against major trading currencies on the interbank market by August 2026, shifting away from the strong gains recorded during the same timeframe last year, according to the Bank of Ghana’s (BoG) Monetary Policy Report for September 2026.
Figures from the report indicate that the local currency suffered a year-to-date depreciation of 7.11 percent against the US dollar by the end of August 2026. Within that same timeframe, the cedi further retreated by 7.78 percent against the British pound and 6.09 percent against the euro.
These figures contrast sharply with the robust performance observed in 2025. During the corresponding period last year, the cedi chalked up notable appreciations of 28.95 percent against the dollar, 19.49 percent against the pound, and 14.08 percent against the euro.
Despite the downturn, the central bank’s report highlighted a silver lining, noting that the cedi maintained a steadier trajectory with reduced volatility throughout the first 185 transaction days of 2026 when compared to the preceding four years.
Explaining the macroeconomic dynamics at play, the report observed: “On the international market, the US dollar strengthened in September due to the Fed’s recent policy rate hikes and, as a result, EMDE currencies came under pressure. 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. In the outlook, seasonal demand pressures coming from energy and commerce sectors may weigh on the cedi.”
Additional trade-weighted metrics from the central bank show that the cedi dropped by 6.80 percent in nominal trade-weighted terms and 7.58 percent in nominal forex transaction-weighted terms year-to-date by August 2026. This contrasts with gains of 14.22 percent and 21.60 percent respectively across the same indicators in 2025.
When evaluated in real bilateral terms up to August 2026, the local currency weakened by 8.47 percent against the dollar, 8.15 percent against the pound, and 6.97 percent against the euro. Conversely, the same period in 2025 saw the cedi strengthen in real terms by 20.51 percent, 15.91 percent, and 16.94 percent against the respective currencies.
The central bank further detailed: “In terms of the real effective exchange rate, the Ghana cedi depreciated by 7.27 percent and 8.35 percent, respectively, in real trade weighted terms and real forex transaction weighted terms, on a year-to-date basis, in August 2026. This compared with an appreciation of 17.34 percent and 20.15 percent, respectively, in real trade weighted terms and forex transaction weighted terms, for the same period in 2025.”
By: Rainbowradioonline.com/Ghana