The Ghana cedi slid nearly 10% against the US dollar in the second quarter of 2026, according to the World Bank’s Africa Economic Update published in October 2026. Between March and June, the cedi recorded the steepest depreciation among African currencies amid the escalating conflict in the Middle East.
The World Bank’s report placed Ghana’s currency as the worst performing on the continent, with a nearly 10% drop. Lesotho’s loti, Namibia’s dollar, South Africa’s rand, and Swaziland’s lilangeni each fell by over 6%. The report tracked exchange rates across 22 African countries outside the CFA franc zone.
“Most countries with available daily exchange rate data recorded currency depreciations during the second quarter of 2026 relative to end-February, before the conflict intensified,” the World Bank wrote. In seven of those countries, including Ghana, the Democratic Republic of Congo, Seychelles, and South Africa, the maximum depreciation exceeded 5%.
The Middle East conflict exerted broad pressure on African currencies by driving up oil and energy prices. The resulting rise in import bills increased demand for US dollars in net energy-importing economies, weakening foreign currency reserves and intensifying currency depreciation. The report said this external shock combined with preexisting domestic vulnerabilities.
Heightened geopolitical uncertainty also triggered a flight to safety in global financial markets, leading to capital outflows from emerging and frontier markets in Africa. Supply disruptions in the Middle East pushed up the cost of agricultural inputs like fertilizers, adding inflationary pressures on imports.
Currency depreciation increased fiscal strain on countries with significant US dollar-denominated debt. The local currency cost of servicing external debt rose, amplifying fiscal vulnerabilities.
By the end of August 2026, however, the report noted that much of the initial pressure on currencies had eased, with only 10 African currencies remaining weaker than they were at the end of February.
Despite this, the Ghana cedi remained under pressure in late August and September. Year-to-date depreciation against the US dollar reached 10.04%. In the interbank market, the cedi weakened by 1.39% to 11.62 per US dollar. Against the British pound and euro, the cedi strengthened slightly, gaining 0.70% to 15.40 per pound and 0.47% to 13.24 per euro.
Retail foreign exchange markets showed mixed performance. The cedi appreciated by 0.21% against the US dollar and 0.91% against the euro, with rates of 11.93 and 13.73 respectively. It weakened by 0.31% against the pound, trading at 15.88.
The currency’s performance reflects the complex interaction between global geopolitical events, commodity prices, and Ghana’s domestic economic conditions.
According to Joy Online.
