Governor of the Bank of Ghana (BoG), Dr Johnson Pandit Asiama, has urged Ghanaians not to panic over the recent marginal depreciation of the cedi, describing the movement as normal and short-term.
Speaking at the 128th Monetary Policy Committee (MPC) press conference in Accra on Wednesday, January 28, Dr Asiama explained that the cedi’s recent weakness is largely driven by speculative activity and seasonal factors rather than any fundamental deterioration in the economy.
“Don’t get worried if you see the cedi moving a little bit, it is normal. Speculative behaviour can move the cedi,” he said.
According to the BoG Governor, the current pressures on the local currency are temporary and are expected to ease as ongoing reforms take effect.
“It is more of a short-term kind of factor, but it will fall in line. We have announced a number of reforms,” Dr Asiama added.
Fresh data from the Bank of Ghana’s Economic and Financial Data for January 2026 show that the cedi came under renewed pressure at the start of the year, losing value against major international currencies.
On the interbank market, the cedi traded at GH¢10.88 to the US dollar in January 2026, compared with GH¢10.45 at the end of December 2025, representing a depreciation of about 4 per cent.
The local currency also weakened against the British pound and the euro, depreciating by 4.9 per cent and 4.1 per cent respectively. During the period, the cedi traded at GH¢14.77 to the pound and GH¢12.80 to the euro on the interbank market.
In the retail forex market, the cedi exchanged at around GH¢12.00 to the dollar, reflecting persistent demand pressures. The dollar traded within a narrow range of GH¢11.90 to GH¢12.15, while the pound and euro strengthened to approximately GH¢16.30 and GH¢14.20 respectively.
Market analysts attribute the January depreciation to seasonal foreign exchange demand, typical portfolio adjustments at the start of the year, and the cedi’s sensitivity to global financial conditions.
Despite the recent decline, analysts note that the depreciation remains modest when compared to the exceptional gains recorded in 2025.
The early-year weakness contrasts sharply with developments last year, when the cedi recorded one of its strongest performances in recent history.
After depreciating by 3.9 per cent in January 2025 and extending losses through February and March, the currency rebounded strongly from April. By May 2025, the cedi had appreciated by about 43 per cent against the US dollar, supported by improved investor confidence, stronger foreign exchange inflows and tighter policy coordination.
The rally was sustained through the rest of the year, with the cedi closing 2025 with a year-to-date gain of 40.7 per cent.
Beyond exchange rate movements, BoG data point to improving public debt dynamics, offering cautious optimism to investors and businesses.
As at November 2025, Ghana’s total public debt stood at GH¢644.6 billion, representing 45.5 per cent of GDP. This marked a decline of about GH¢40 billion between September and November, largely due to reduced borrowing and improved cash management.
In dollar terms, public debt eased to US$57.2 billion, while external debt fell to US$29.3 billion, equivalent to 23.3 per cent of GDP, with changes driven mainly by valuation effects rather than new borrowing.
