Cedi Ranked Africa’s Worst-Performing Currency in Q2 2026 – World Bank

Accra, Ghana — October 7, 2026:
The Ghanaian cedi recorded the sharpest depreciation among African currencies monitored by the World Bank during the second quarter of 2026, losing nearly 10% of its value against the US dollar between March and June.

The assessment is contained in the World Bank’s October 2026 Africa Economic Update, which examines economic and financial developments across Sub-Saharan Africa.

The cedi’s decline came amid renewed pressure on African currencies following the escalation of conflict in the Middle East. Rising energy prices, increased demand for US dollars and heightened uncertainty in international financial markets contributed to pressure on several African currencies.

The cedi’s performance was significantly weaker than a number of other currencies on the continent. The Lesotho loti, Namibia dollar, South African rand and Eswatini lilangeni each recorded declines of more than 6% during the period.

External shocks deepen pressure

The World Bank said the currency movements reflected a combination of international shocks and existing domestic vulnerabilities.

Higher oil and energy prices increased import costs for countries that rely heavily on energy imports, putting additional demand on foreign exchange markets. The resulting pressure on reserves contributed to weaker currencies.

The Bank also pointed to a shift in global investor behaviour as geopolitical tensions increased. Investors moved toward safer assets, leading to capital outflows from emerging and frontier markets and adding further pressure to African currencies.

Disruptions linked to the Middle East conflict also increased the cost of some agricultural inputs, including fertiliser. According to the World Bank, this added to imported inflationary pressures in affected economies.

Cedi weakness and debt concerns

The depreciation of the cedi has implications beyond the foreign-exchange market. A weaker local currency increases the domestic-currency cost of servicing debts denominated in US dollars and can raise the cost of imported goods, fuel, machinery and raw materials.

The World Bank warned that currency depreciation can therefore compound fiscal vulnerabilities, particularly in countries with significant foreign-currency debt obligations.

Despite the second-quarter setback, the Bank noted that much of the broad pressure on African currencies had eased by the end of August. Only 10 of the currencies monitored remained weaker than their end-February levels.

Ghana’s economy remains resilient

The currency setback comes against a broader economic picture that is not entirely negative for Ghana.

The World Bank’s latest regional update projects Sub-Saharan African growth to increase from 4.1% in 2025 to 4.3% in 2026. It also highlights stronger domestic demand and improved macroeconomic resilience across parts of the region.

For Ghana, the contrast between currency performance and wider economic activity remains significant. Recent reporting based on the World Bank update puts Ghana’s 2026 growth forecast at 4.8%, showing that economic expansion has continued despite pressure on the currency.

The cedi has, however, continued to face pressure against the dollar. Recent market data cited by MyJoyOnline put its year-to-date depreciation against the US dollar at about 10.04%.

The latest World Bank assessment is likely to keep attention focused on Ghana’s foreign-exchange market, external financing needs and the country’s ability to absorb global economic shocks while maintaining economic growth.