The Bank of Ghana expects stronger remittance flows to help stabilise the Ghana cedi, which has depreciated 8.89% from January to 21 July 2026. The central bank is counting on improved foreign exchange inflows in the coming months, including remittances and support from development partners [S3].
Remittances are a key component of Ghana's external inflows, but the mechanics of channelling them into productive investment remain unclear. The Bank of Ghana has not detailed how diaspora funds will be directed beyond general foreign exchange market support [S3].
The cedi came under renewed pressure in July as dollar demand outpaced supply. The Bank of Ghana increased its weekly foreign exchange auction last week, yet bids went unmet at Thursday's spot auction [S3].
Cedi pressure persists
The cedi depreciated 0.60% during the week ending 21 July 2026, pushing month-to-date depreciation to 1.86%. Market players linked the pressure to increased demand from energy sector players seeking foreign exchange for crude oil imports, finished petroleum products, and payments to power producers. Others cited inadequate dollar supply to match business demand [S3].
Some businesses are taking positions to protect investments amid concerns that tensions in the Middle East could trigger further pressure on the local currency [S3].
Bank of Ghana interventions
The central bank injected funds into the foreign exchange market in June 2026, which helped the cedi record its first monthly appreciation of the year, gaining 3.30% against the US dollar. Of that amount, some was sold through the Forex Intermediation Programme, with auctions conducted twice weekly. Commercial banks submitted bids totalling a large sum, highlighting strong demand [S3].
Ghana's international reserves have crossed a significant threshold. The Bank of Ghana expects IMF programme support and further funds in July 2026 to strengthen reserves. Improved investor confidence following Ghana's Fitch upgrade and the government's early Eurobond repayment decision could also support the economy [S3].
Remittance outlook
The Bank of Ghana is counting on stronger remittance flows in the coming months as part of improved foreign exchange inflows. However, the central bank has warned that risks remain, particularly uncertainties surrounding the Middle East peace process, which could affect global crude oil prices and increase dollar demand [S3].
The central bank says it will continue to monitor developments and introduce measures to maintain stability in the foreign exchange market [S3].
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