Cedi depreciates by 7.11% against dollar in August 2026 – BoG report

The Bank of Ghana's latest Monetary Policy Report for September 2026 reveals that the Ghanaian cedi lost 7.11% of its value against the US dollar from January to August 2026. This depreciation was observed on the interbank market, where the cedi's value fell against major currencies including the pound and euro. In comparison, the cedi appreciated significantly last year, with gains of 28.95% against the dollar, 19.49% against the pound, and 14.08% against the euro.

Interestingly, the cedi displayed less volatility in the initial 185 days of 2026 compared to the last four years. The US dollar's strength in September, fueled by the Federal Reserve's recent interest rate hikes, contributed to the downward pressure on the cedi in the international market. However, the local foreign exchange market saw relatively lower pressures on the cedi due to reduced demand and the Bank of Ghana's market support initiatives.

Looking ahead, factors like seasonal demands from the energy and commerce sectors could potentially exert downward pressure on the cedi. When comparing exchange rate movements with other major trading partners, the cedi depreciated more in nominal terms but showed less depreciation in real terms against these currencies in 2026 compared to the previous year.

The cedi's real effective exchange rate depreciated by 7.27% and 8.35% in nominal trade weighted terms and nominal forex transaction weighted terms, respectively, in August 2026, marking a decrease from appreciations of 17.34% and 20.15% in the same period of 2025.