The Ghanaian cedi’s depreciation against the US dollar has slowed significantly since the start of 2026, reflecting improved foreign exchange liquidity and reduced demand for hard currency.
After weakening by more than 4% earlier in the year based on price quotes from some major commercial banks, the local currency has now recorded a much slower depreciation of about 1.65% year-to-date.
Analysts say the improved performance began in the second week of February 2026, when the cedi started regaining some ground against the dollar.
Data from commercial banks indicate that the cedi appreciated by about 2.21% between the second week of February and the end of the month. The currency opened the period at about GH¢10.95/US$ (bid) and GH¢10.98/US$ (offer) before closing at GH¢10.70/US$ and GH¢10.76/US$, translating into the 2.21% gain.
Market analysts attribute the improvement largely to increased dollar supply and reduced demand for foreign exchange from businesses. The lower demand has also been linked to the week-long Chinese New Year holiday, which typically slows import-related transactions.
The Bank of Ghana also played a key role in stabilising the market through its dollar intermediation programme.
Throughout February, the central bank sold a total of $902 million through its bi-weekly auctions, out of a $1 billion intermediation target, helping to ease pressure on the local currency.
Trading activity in the foreign exchange market remained strong during the period, with average daily turnover hovering around $20 million. The final trading session of the month recorded transactions of about $18 million, within the GH¢10.63–GH¢10.76 per dollar range.
The Bank of Ghana has indicated it will maintain the same intermediation approach for March, keeping the $1 billion target for FX support.
However, some market analysts expect mild pressure on the cedi in the coming weeks as foreign exchange demand gradually picks up following the end of the Chinese New Year holidays.
Others believe planned domestic bond issuances later this month could attract offshore investor participation, inject additional dollar liquidity into the market and help keep the cedi relatively stable.
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