World Bank ranks Ghana cedi worst African currency in 2nd quarter amid geopolitical turmoil

The Ghanaian currency, the cedi, experienced the most significant decline among African currencies during the second quarter of 2026, according to data from the World Bank's October Africa Economic Update. The cedi depreciated by nearly 10% against the US dollar between March and June, with other regional currencies like the Lesotho loti, Namibia dollar, South African rand, and Swazi lilangeni also decreasing by over 6%.

This decline was primarily due to escalating conflicts in the Middle East, leading to heightened geopolitical tensions and immediate market reactions. Seven out of the 22 countries monitored, excluding the CFA franc zone, saw maximum depreciation exceeding 5.0%, including Ghana. By the end of August, market conditions had stabilized, with only 10 currencies remaining weaker than their levels at the end of February.

However, weaker exchange rates added to the fiscal challenges faced by nations with substantial foreign debt, as higher conversion rates increased the domestic cost of servicing dollar-denominated obligations. Despite these challenges, Ghana's economic growth projection for the year remains steady at 4.8%, underpinned by resilient domestic activity, rapid disinflation, and positive investor sentiment due to recent progress in the country's debt restructuring framework.