The Ghanaian cedi has recorded a significant slowdown in its rate of depreciation against the US dollar, easing to 1.65% since the beginning of 2026, marking a notable improvement in the local currency’s performance.
This represents a sharp deceleration from earlier in the year when the cedi had depreciated by more than 4% against the greenback, based on price quotes from major commercial banks.
Turnaround Since Mid-February
Data from commercial banks indicates that the cedi has actually appreciated by approximately 2.21% since the second week of February 2026, signalling a reversal of the earlier downward trend.
The month opened at a rate of USD/GH¢10.9500/10.9800 and closed at GH¢10.7000/10.7550, translating into solid gains for the local currency over the period.
Analysts attribute the improved performance to increased dollar supply in the market and reduced demand for foreign exchange from businesses.
Chinese New Year Effect
Market watchers have also pointed to the week-long Chinese New Year holiday as a contributing factor to the reduced demand for hard currency.
“By mid-February, FX liquidity improved, coinciding with the Chinese New Year holidays, during which demand for hard currency softened materially,” one market player told JoyBusiness.
Central Bank Intervention
The Bank of Ghana has played an active role in supporting the market through its dollar intermediation programme. Throughout February, the central bank sold a total of $902 million through its bi-weekly auctions, against a $1 billion intermediation target.
Trading activity remained robust during the period, with daily average turnover hovering around $20 million. The final trading session of the month recorded approximately $18 million in transactions within the 10.6300–10.7550 range.
Outlook for March
The central bank has announced it will maintain the same intermediation approach for March, retaining the $1 billion target.
However, some market analysts anticipate mild pressure on the cedi as foreign exchange demand resumes following the Chinese New Year holidays.
Others express optimism that the expected domestic bond issuance later this month could attract offshore investor participation, potentially providing additional liquidity support and helping to maintain the cedi’s relative stability.
