Cedi was worst African currency in quarter 2, 2026 – World Bank

In the second quarter of 2026, the Ghana cedi emerged as the weakest African currency, according to the World Bank's October 2026 Africa Economic Update. The cedi depreciated nearly 10% against the US dollar, falling to GH¢11.62 by June 2026. Other African currencies experiencing significant depreciation included the Lesotho loti, Namibia dollar, South Africa rand, and Swazi lilangeni, all of which weakened by over 6% against the US dollar.

The World Bank attributed this currency depreciation to the Middle East conflict's initial broad-based pressure on African currencies. Most countries with daily exchange rate data recorded currency depreciations during the second quarter of 2026 relative to end-February, with seven of the 22 monitored countries experiencing a maximum depreciation exceeding 5.0%.

However, by end-August, the pressure had eased, with only 10 currencies remaining weaker than their end-February levels. The currency response reflected the interaction of external shocks and preexisting domestic vulnerabilities. Rising oil and energy prices increased import bills, intensified depreciation pressures, and strained reserve positions.

Meanwhile, heightened geopolitical uncertainty prompted capital reallocation away from emerging and frontier economies. The World Bank also noted that supply disruptions in the Middle East pushed up the cost of key agricultural inputs, contributing to imported inflation pressures. The cedi's year-to-date depreciation against the US dollar reached 10.04% by the end of June 2026.

In the interbank market, the cedi weakened by 1.39% to GH¢11.62 against the US dollar but gained against the pound and euro. The retail forex market performance was mixed, with the cedi appreciating slightly against the US dollar and euro, but weakening against the pound.