The Ghana cedi continued its downward trend against major trading currencies over the past two weeks, as rising demand for foreign exchange and growing corporate repatriation needs intensified pressure on the local currency.
According to the latest market update, the cedi weakened across both the interbank and retail foreign exchange markets, with analysts attributing the depreciation to heightened demand for US dollars amid moderate foreign exchange supply conditions.
In the interbank market, the cedi traded at GHS 11.85 to the US dollar, down from GHS 11.63 recorded in the previous review period.
Similarly, the local currency depreciated against the British pound and the euro, with exchange rates rising to GHS 15.85/GBP and GHS 13.66/EUR from GHS 15.62 and GHS 13.49 respectively.
The weakness was also reflected in the retail market, where the cedi lost 0.81 percent against the dollar, 1.83 percent against the pound, and 1.40 percent against the euro, closing at mid-rates of GHS 12.30/USD, GHS 16.35/GBP and GHS 14.30/EUR.
On a month-on-month basis, the cedi depreciated by an average of 4.18 percent between April and May 2026, compared to the 3.23 percent decline recorded at the end of April.
This occurred despite approximately $1.1 billion in foreign exchange interventions by the Bank of Ghana during May.
Analysts noted that market sentiment remained largely bearish as demand for foreign currency continued to outpace supply.
The pressure on the cedi has also been linked to growing global demand for the US dollar, with central banks reportedly liquidating non-dollar assets to meet increasing import costs fueled by persistently high refined crude oil prices.
Looking ahead, market observers expect speculation in the foreign exchange market to remain relatively contained, supported by an announced $1.2 billion monthly foreign exchange support programme for June.
However, analysts caution that the cedi could face additional pressure in the coming weeks as multinational companies begin repatriating profits and dividends during the second-quarter repatriation period.
“Corporate demand typically peaks during the Q2 repatriation window, driven by multinational dividend and profit outflows,” the report noted.
As a result, the dollar-cedi exchange rate is expected to weaken further beyond the current interbank level of GHS 11.85 unless foreign exchange inflows strengthen significantly.
Meanwhile, in South Africa, the rand also came under pressure during the review period, weakening by 1.15 percent to close at ZAR 16.28 per US dollar.
Analysts attributed the decline to elevated oil prices and renewed geopolitical tensions that have dampened investor risk appetite and increased concerns over import costs.
The outlook for the rand remains cautious, with elevated crude oil prices and uncertain global market conditions expected to keep the currency under pressure in the near term.