The Ghana cedi has come under renewed pressure as demand for foreign exchange continues to outstrip market supply, pushing the local currency into further depreciation.

Data gathered by JOYBUSINESS from some major commercial banks shows sustained pressure on the cedi over the past two weeks, with businesses seeking more dollars than the market has been able to provide.

Some market players have linked the pressure to increased demand from energy sector players seeking foreign exchange to finance crude oil imports, finished petroleum products and payments to power producers.

Others believe the challenge is largely due to inadequate dollar supply to match demand from businesses.

One market player told JOYBUSINESS: “We don’t think that anything has changed.”

Market Data and Developments

There are also indications that some businesses are taking positions to protect their investments amid concerns that tensions in the Middle East could trigger further pressure on the local currency.

Checks by JOYBUSINESS show that the Bank of Ghana increased its weekly foreign exchange auction to $220 million last week.

However, demand remained stronger than supply, with about $201 million in bids left unmet at Thursday’s spot auction.

The cedi depreciated by 0.60% during the week, pushing its month-to-date depreciation to 1.86%. From January to date, the local currency’s depreciation has worsened to 8.89%.

The latest development comes after the cedi recorded its first monthly appreciation of 2026 in June, gaining 3.30% against the US dollar.

The June appreciation was largely attributed to increased support from the Bank of Ghana, which injected $2.01 billion into the foreign exchange market to meet demand and support stability.

The central bank sold $1.2 billion through its Forex Intermediation Programme, with auctions conducted twice weekly throughout the month.

Although the amount was in line with the Bank’s monthly target, commercial banks submitted bids totalling $3.42 billion, highlighting strong demand for foreign exchange.

BoG Assurance

The Bank of Ghana has maintained that there is no need for businesses to panic, describing the recent pressure as temporary market movements.

Officials of the central bank have insisted that it remains in a strong position to support the market when necessary and ensure that critical imports are not affected.

Recent data from the Bank of Ghana shows that Ghana’s international reserves have crossed $14 billion.

The central bank is also counting on improved foreign exchange inflows in the coming months, including stronger remittance flows and support from development partners.

It expects inflows from the IMF programme, including about $380 million in programme support and a further $240 million expected in July 2026, to strengthen reserves.

The Bank is also optimistic that improved investor confidence following Ghana’s Fitch upgrade and the government’s early Eurobond repayment decision could support the economy.

However, it has warned that risks remain, particularly uncertainties surrounding the Middle East peace process, which could affect global crude oil prices and increase dollar demand.

The Bank of Ghana says it will continue to monitor developments and introduce measures to maintain stability in the foreign exchange market.