The Bank of Ghana has addressed concerns over the recent depreciation of the cedi, insisting that the currency’s decline in January 2026 does not pose a risk to macroeconomic stability.
This assurance follows the cedi’s loss of about four per cent in value against the US dollar in the first month of the year. Speaking at a press conference after the 128th Monetary Policy Committee (MPC) meeting in Accra on Wednesday, January 28, Governor Dr. Johnson Pandit Asiama said the movement was modest, temporary and not a cause for alarm.
According to the Governor, marginal fluctuations in the exchange rate are normal, particularly at the beginning of the year, when seasonal demand for foreign exchange and speculative activities tend to increase.
“Don’t get worried if you see the cedi moving a little bit. It is normal. Speculative behaviour can move the cedi,” Dr. Asiama said, adding that current pressures are expected to ease as ongoing reforms take effect.
Data from the Bank of Ghana’s January 2026 Summary of Economic and Financial Data shows that the cedi traded at GH¢10.88 to the dollar on the interbank market in January, compared with GH¢10.45 at the end of December 2025. Over the same period, the local currency depreciated by 4.9 per cent against the British pound and 4.1 per cent against the euro, trading at GH¢14.77 to the pound and GH¢12.80 to the euro.
In the retail market, the cedi hovered around GH¢12.00 to the dollar, reflecting continued demand pressures. Over the past two weeks, the dollar firmed from about GH¢11.90 to GH¢12.15, while the pound and euro strengthened to approximately GH¢16.30 and GH¢14.20 respectively.
The central bank attributed the January depreciation to a mix of seasonal foreign exchange demand, portfolio rebalancing by investors at the start of the year, and sensitivity to global financial conditions. Dr. Asiama stressed that the underlying fundamentals of the economy remain strong and that the current exchange rate movements are not expected to undermine price stability or overall economic performance.
He reaffirmed the Bank’s commitment to deploying a full range of monetary policy tools, including open market operations, to manage liquidity, support orderly market functioning and anchor inflation expectations.
Despite the early-year softness, the Bank of Ghana noted that the scale of the depreciation remains modest when viewed against the cedi’s exceptional performance in 2025. After a weak start last year, the currency staged a strong turnaround from April, supported by improved confidence, stronger foreign exchange inflows and tighter coordination between fiscal and monetary policy, eventually closing 2025 with a year-to-date gain of 40.7 per cent.
The central bank says it remains vigilant and ready to act if necessary, while maintaining its focus on sustaining price stability and supporting broader economic growth.