Is Ghana’s Weak Cedi Driving a Shift to Foreign Currency Savings?

Imagine that you’re saving for the future, but every cedi you stash away seems to lose value faster than you can save. It’s a harsh reality many Ghanaians are grappling with as the cedi continues its relentless downward slide.

Over the past year, the cedi fell from GHC 12.05 to GHC 15.06 per US dollar, a staggering drop of over 20%. Pair that with inflation peaking at 25.8% in March 2024 and steadily climbing again from 20.9% in August to 23.8% by December, and you have a perfect storm driving Ghanaians toward foreign currency savings.

But here’s the catch: when more people flock to dollars and euros as a financial safety net, it’s not just a sign of lost confidence in the cedi, it puts even more pressure on the struggling currency. This growing preference for foreign currency savings creates a vicious cycle that makes stabilizing the cedi even harder.

The data from the Bank of Ghana paints a clear picture. Foreign currency deposits surged throughout 2024, jumping from GHC 64.6 billion in January to GHC 82.0 billion in December, a remarkable 27% increase in just one year. For many, dollars, pounds, or euros now feel like the only safe choice, offering a shield against the twin threats of depreciation and inflation.

While inflation eased slightly mid-year, it roared back toward the end of 2024, signaling unrelenting price pressures. From August to December, inflation climbed from 20.9% to 23.8%, with food prices stubbornly high at 27.8% by year-end. For most households, stretching the cedi to meet rising costs became an uphill battle.

This rising cost of living is driving the desperate surge in foreign currency savings. For businesses and individuals alike, it’s more than just a financial decision, it’s survival. With the cedi hemorrhaging value, why hold onto it when foreign currencies offer stability and hope?

Yet, this shift comes with a heavy price. The more people turn to dollars and euros, the greater the strain on the cedi, deepening the depreciation spiral.

And while foreign accounts may provide temporary relief for individuals, the ripple effects create deeper economic challenges for Ghana as a whole.

Last Updated on March 9, 2026 by Samuel Kwame Boadu

Samuel Kwame Boadu

Samuel Kwame Boadu is a Ghanaian media entrepreneur and storyteller with a passion for amplifying urban voices and uncovering everyday truths. He is the Editor-in-Chief and Founder of Accra Street Journal, a dynamic digital platform dedicated to capturing the pulse of Ghana’s capital—its people, culture, challenges, business, sports and innovations.

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