Ghana's cedi remained under pressure over the past two weeks as growing demand for foreign currency continued to weigh on its performance against major international currencies.

Data from the interbank market showed that the cedi weakened against the US dollar, British pound, and euro during the review period. The exchange rate for the dollar rose to GHS11.85 from GHS11.63, while the pound and euro increased to GHS15.85 and GHS13.66 respectively.

The depreciation was also reflected in the retail foreign exchange market. The cedi lost 0.81% against the US dollar, 1.83% against the pound, and 1.40% against the euro, closing at average rates of GHS12.30 per dollar, GHS16.35 per pound, and GHS14.30 per euro.

On a monthly basis, the local currency recorded an average depreciation of 4.18% between April and May 2026, compared to the 3.23% decline recorded by the end of April. This happened despite the Bank of Ghana injecting about US$1.1 billion into the foreign exchange market in May to support the cedi.

According to Databank Research, the cedi's recent decline was largely expected due to persistent demand for foreign currency and limited supply in the market.

The research firm noted that rising global crude oil prices have increased import costs, prompting central banks and businesses to seek more US dollars to finance transactions. This has further strengthened demand for the American currency and added pressure on the cedi.

Looking ahead, Databank expects speculation in the foreign exchange market to remain under control, supported by the government's planned US$1.2 billion monthly forex support package for June 2026.

However, the firm believes the cedi could face further weakening in the coming weeks. This is because corporate demand for foreign currency typically rises during the second quarter of the year when multinational companies repatriate dividends and profits to their parent companies abroad.

Meanwhile, the cedi began the new week trading at around GHS12.40 to the US dollar at forex bureaus, representing a depreciation of about 1.05% against the greenback.

Market analysts say the performance of the cedi in the coming weeks will largely depend on foreign exchange supply levels, corporate demand, and the effectiveness of ongoing interventions by the authorities.