The cedi’s rate of depreciation against the US dollar has slowed significantly in the first week of March 2026.

The local currency, which had depreciated by more than 4% earlier in the year based on price quotes by some major commercial banks, has now recorded a much slower depreciation of about 1.65% since the beginning of the year.

Analysts say the slowdown reflects an improvement in the cedi’s performance that began in the second week of February 2026.

Data from commercial banks show that the cedi actually appreciated by about 2.21% from the second week of February.

The development has been linked to an increase in dollar supply and a reduction in demand for foreign exchange from businesses. Some market analysts also attribute the lower demand to the week-long Chinese New Year holiday.

The month opened at USD/GH¢10.9500/10.9800 and closed at GH¢10.7000/10.7550, translating into an appreciation of about 2.21% over the period.

One market player told JoyBusiness that “By mid-February, FX liquidity improved, coinciding with the Chinese New Year holidays, during which demand for hard currency softened materially.”

The Bank of Ghana also supported the market through its dollar intermediation programme.

Throughout February, the central bank sold a total of $902 million through its bi-weekly auctions, out of a $1 billion intermediation target.

Trading activity remained strong during the period, with daily average turnover hovering around $20 million. The final trading session of the month recorded about $18 million in transactions within the 10.6300–10.7550 range.

The central bank has announced that it will maintain the same intermediation approach for March, keeping the $1 billion target.

However, some market analysts expect mild pressure on the cedi as foreign exchange demand resumes following the Chinese New Year holidays.

Others believe the expected domestic bond issuance later this month could attract offshore investor participation, provide additional liquidity support and help keep the cedi relatively stable.