Cedi emerges as West Africa’s worst-performing currency amid persistent depreciation
Ghana’s cedi has emerged as the worst-performing currency in West Africa and one of the weakest on the African continent following its continued depreciation against the US dollar in 2026.
An analysis by Reuters, citing data from the London Stock Exchange Group (LSEG), indicated that the cedi had recorded a year-to-date decline of 10.28% as of early May 2026.
At the time of the report, the local currency was trading at 11.36 cedis to the dollar, with analysts projecting further depreciation due to persistent demand for foreign exchange, especially from the energy sector.
According to Reuters, strong corporate demand for dollars continues to place pressure on the cedi, with energy-related transactions identified as a major factor behind the currency’s decline.
The cedi weakened further after the report and ended trading last week at approximately 11.61 to the dollar.
Among the nine currencies used across West Africa, including the CFA franc shared by eight countries in the sub-region, the Ghanaian cedi has recorded the highest depreciation so far in 2026.
Its poor performance has also placed it among Africa’s weakest currencies this year, alongside currencies such as the Libyan dinar.
The continued fall in the cedi’s value comes despite recent positive economic developments, including easing inflation.
However, the depreciation has continued to impact prices of goods and services as businesses and importers obtain foreign exchange at rates above official market levels.
Reuters attributed the sustained weakness of the cedi to growing foreign exchange demand from traders, importers, and businesses, noting that market participants expect the downward trend to continue in the coming months.
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