February starts with a softer cedi against the dollar
The Ghanaian cedi opened the second week of January 2026 weaker on the Bank of Ghana’s interbank foreign exchange market, trading at around GH¢10.75 to one US dollar. Data released by the central bank on Thursday, January 15, 2026, showed the dollar buying at GH¢10.74 at some points during the day, signaling continued volatility in the currency markets. The depreciation of about 2 pesewas to the dollar is a reminder that the cedi remains under pressure from persistent macroeconomic challenges, including inflation, a widening current-account deficit, and external sector headwinds.
What this means for businesses and households
For importers, a weaker cedi translates into higher cost of goods and inputs priced in dollars. Companies that rely heavily on imported raw materials, machinery, or consumer goods may face tighter margins unless they pass costs onto consumers or hedge effectively. Consumers could feel the effect indirectly through higher prices on goods and services, contributing to continued inflationary pressures. Households who travel or remit money abroad may also notice changes in the exchange rate that affect their purchasing power and budgets.
Factors driving the depreciation
Several factors typically influence the cedi’s performance in the interbank market. These include the level of foreign exchange reserves, demand from importers, investor confidence, and the stance of monetary policy. In early 2026, traders will be closely watching the Bank of Ghana’s policy signals, budgetary developments, and global commodity prices that affect export earnings. A weaker cedi can reflect nervousness about the country’s ability to stabilize the macroeconomy, even as external factors such as commodity price swings or global monetary policy shifts exert influence.
Policy considerations and potential remedies
Policy makers often use multiple levers to address exchange-rate volatility. Measures may include:
– Strengthening monetary policy credibility to anchor inflation expectations.
– Building and sustaining foreign exchange reserves to cushion shocks.
– Implementing reforms that improve the balance of payments, such as diversifying export earnings and reducing import dependence on nonessential goods.
– Targeted interventions in the domestic market to smooth liquidity without fueling inflation.
What to watch in the coming weeks
As January progresses, observers will monitor how the cedi performs against the dollar, the level of interbank liquidity, and any new data on inflation and external sector performance. If the Bank of Ghana signals a clearer path toward macroeconomic stabilization, the cedi could regain some footing. Conversely, continued pressures could push the currency lower, reinforcing the need for cautious budgeting and prudent hedging by businesses that operate with foreign exchange exposure.
Bottom line
The cedi’s move to about GH¢10.75 per dollar marks a continuation of a challenging period for Ghana’s currency. While the depreciation may be modest in the short term, sustained weakness could have broader implications for inflation, consumer prices, and business planning. Stakeholders—from policymakers and investors to importers and ordinary citizens—will be watching how the exchange rate evolves in the weeks ahead and what policy actions accompany any shifts.
