Cedi loses 7.11% of its value against Dollar in August 2026 – BoG

In August 2026, the Bank of Ghana's Monetary Policy Report revealed that the cedi experienced a 7.11% depreciation against the dollar on a year-to-date basis in the interbank market. The cedi also declined 7.78% against the pound and 6.09% against the euro in the same period. In contrast, the cedi appreciated by 28.95%, 19.49%, and 14.08% against the dollar, pound, and euro respectively in 2025.

The report noted that the cedi was less volatile during the initial 185 transaction days of 2026 compared to the previous four years. The US dollar's strong performance in September, driven by recent policy rate hikes from the Federal Reserve, exerted pressure on the cedi in the international market. Meanwhile, demand pressures and the Bank of Ghana's support measures moderated the cedi's vulnerability in the local foreign exchange market.

Looking ahead, seasonal demand pressures from the energy and commerce sectors could negatively impact the cedi. Comparing exchange rate movements with major trading partners, the cedi depreciated by 6.80% and 7.58% in nominal trade weighted terms and nominal forex transaction weighted terms, respectively, in August 2026. This is a stark contrast to the appreciation of 14.22% and 21.60% during the same period in 2025.

In real bilateral terms, the cedi depreciated by 8.47%, 8.15%, and 6.97% against the dollar, pound, and euro, respectively, on a year-to-date basis in August 2026. This represents a shift from the appreciation of 20.51%, 15.91%, and 16.94% against the dollar, pound, and euro, respectively, in 2025. The report also highlighted that in real trade weighted terms and real forex transaction weighted terms, the Ghana cedi depreciated by 7.27% and 8.35% year-to-date in August 2026.

This is in comparison to the appreciation of 17.34% and 20.15% in the same terms for the same period in 2025.