Cedi Weakens Further as Rising FX Demand Mounts Pressure on Local Currency

The Ghana cedi continued to lose ground against major international currencies over the past two weeks as increased demand for foreign exchange and growing corporate repatriation requirements placed renewed pressure on the local currency.

According to the latest market update, the cedi depreciated in both the interbank and retail foreign exchange markets, with analysts attributing the trend to strong demand for US dollars amid relatively moderate forex supply.

Interbank Market Records Decline

In the interbank market, the cedi traded at GH¢11.85 to the US dollar, compared to GH¢11.63 in the previous review period.

The local currency also weakened against other major currencies, with exchange rates rising to:

• GH¢15.85 per British pound, up from GH¢15.62
• GH¢13.66 per euro, up from GH¢13.49

Retail Market Reflects Similar Trend

The depreciation was also evident in the retail market, where the cedi lost:

• 0.81% against the US dollar
• 1.83% against the British pound
• 1.40% against the euro

The currency closed at average retail rates of:

• GH¢12.30/USD
• GH¢16.35/GBP
• GH¢14.30/EUR

Month-on-Month Depreciation Accelerates

Data showed that the cedi depreciated by an average of 4.18% between April and May 2026, compared to a 3.23% decline recorded at the end of April.

This occurred despite the Bank of Ghana's intervention of approximately US$1.1 billion into the foreign exchange market during May.

Analysts noted that market sentiment remains largely bearish, with demand for foreign currency continuing to exceed available supply.

Global Factors Adding Pressure

The cedi's weakness has also been linked to broader global developments, including increased demand for the US dollar.

According to analysts, several central banks have been liquidating non-dollar assets to meet rising import costs driven by persistently high refined crude oil prices, further strengthening the dollar globally.

Outlook Remains Cautious

Market observers expect speculative activity in the forex market to remain relatively contained, supported by an announced US$1.2 billion foreign exchange support programme for June.

However, analysts warn that additional pressure could emerge as multinational companies begin repatriating profits and dividends during the second quarter.

“Corporate demand typically peaks during the Q2 repatriation window, driven by multinational dividend and profit outflows,” the report noted.

As a result, the dollar-cedi exchange rate could weaken beyond the current interbank level of GH¢11.85 per dollar unless foreign exchange inflows improve significantly.

Rand Also Under Pressure

Elsewhere, the South African rand also weakened during the review period, depreciating by 1.15% to close at ZAR16.28 per US dollar.

Analysts attributed the decline to elevated oil prices and renewed geopolitical tensions, which have reduced investor appetite for risk and heightened concerns about import costs.

The outlook for the rand remains cautious, with global uncertainties and high crude oil prices expected to keep the currency under pressure in the near term.