Ghana cedi ranked Africa's weakest currency in Q2 2026: See top 5

• The cedi recorded Africa’s sharpest depreciation in Q2 2026, falling nearly 10% against the US dollar.

• The World Bank linked the pressure to higher energy prices and global financial uncertainty.

• Currency pressures eased by the end of August, with several African currencies recovering.

The cedi depreciated by nearly 10% against the US dollar between the end of February and June 2026, according to the World Bank’s October 2026 Africa Economic Update.

The report said the Middle East conflict initially exerted broad-based pressure on African currencies, with most of the countries monitored recording depreciation during the second quarter compared with their end-February levels.

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“Most countries with available daily exchange rate data recorded currency depreciations during the second quarter of 2026 relative to end-February, before the conflict intensified,” the World Bank said.

It added that in seven of the 22 countries monitored, excluding the CFA franc zone, maximum depreciation exceeded 5%, with Ghana, the Democratic Republic of Congo, the Seychelles and South Africa among those affected.

“By end-August, however, much of this pressure had eased, with only 10 currencies remaining weaker than their end-February levels,” the report stated.

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The World Bank attributed the currency movements to a combination of external shocks and existing domestic vulnerabilities.

It said the sharp increase in oil and energy prices raised import bills for net energy-importing countries, increasing demand for US dollars and weakening foreign exchange positions.

“Heightened geopolitical uncertainty triggered a flight to safety in global financial markets, prompting capital reallocation away from emerging and frontier economies,” the report said.

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Supply disruptions also increased the cost of agricultural inputs such as fertiliser, adding to inflationary pressures in importing countries.

For countries with significant dollar-denominated debt obligations, currency depreciation also increased the local-currency cost of servicing external debt.

The impact, however, varied across countries. Countries with heavy energy-import dependence, limited foreign exchange buffers and high debt-service burdens faced greater pressure.

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The report said some economies were more resilient because their exports provided additional foreign exchange earnings.

South Africa benefited from stronger demand for gold and platinum, while oil exporters such as Angola and Nigeria gained from higher crude oil prices, which increased export receipts and foreign currency inflows.

Despite the sharp second-quarter decline, the World Bank noted that pressure on African currencies had eased by the end of August.

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The cedi, however, remained under pressure later in the year. By early October, market data showed the currency trading around GH¢11.70 to the US dollar, compared with GH¢11.60 a week earlier.

The World Bank’s latest assessment therefore places the cedi’s second-quarter performance in the context of a broader regional shock, while also pointing to the role of domestic economic conditions in determining how individual African currencies responded.