Cedi Ranked Worst‑Performing Currency in West Africa After Sharp Slide

The Ghana cedi has emerged as the worst‑performing currency in West Africa and one of the weakest on the continent after suffering a sharp decline against the US dollar in recent weeks.

Analyses by international financial observers — including Reuters, using data from the London Stock Exchange Group (LSEG) — show that the cedi had depreciated by 10.28% year‑to‑date as of early May 2026. At the time of the assessment, the currency was trading at GH¢11.36 to the dollar, a figure that has since weakened further to about GH¢11.61.

Reuters attributed the cedi’s slide largely to persistent corporate demand for foreign exchange, particularly from energy‑sector companies.

“Ghana’s cedi is being dragged down by persistent corporate foreign‑currency demand, particularly from the energy sector,” the report noted.

The continued depreciation has deepened concerns about currency stability and its broader impact on the economy, especially as the cedi now ranks as the steepest‑declining currency among the nine used in the West African sub‑region, including the CFA franc bloc.

Its performance also places it among Africa’s weakest currencies in 2026, alongside the Libyan dinar, which reportedly fell by more than 17% against the dollar over the same period.

The cedi’s decline comes despite improvements in key macroeconomic indicators, including a significant drop in inflation. Yet businesses and consumers say prices remain high, with traders and importers still paying well above official market rates to access dollars. Analysts warn that this mismatch — strong demand versus limited supply — continues to fuel the currency’s downward pressure.

Market watchers say the cedi remains on a “depreciating path,” with traders expecting foreign‑exchange demand to stay elevated in the coming weeks.

— Daily Guide