Should You Hold Dollar-Denominated Investments in 2026?
Every year Ghana goes through an episode of cedi volatility and the same question floods personal finance forums: should I be holding my savings in dollars? In 2022, the cedi lost over 50% of its value against the USD. In 2023 and 2024 it partially stabilised. In 2026 it has been relatively calm. But the structural question remains: is there a case for holding dollar-denominated investments as a Ghanaian?
The Case For
If a significant portion of your spending is linked to the exchange rate — imported goods, education abroad, medical treatment, tech equipment, travel — then your real expenses partly track the dollar. Holding some savings in dollar-denominated instruments is a hedge: when the cedi falls, your dollar savings buy more of what you need.
Additionally, some dollar instruments available to Ghanaians offer reasonable returns. Eurobonds, USD-denominated unit trusts, and foreign currency accounts at Ghanaian banks can all be accessed by residents with the right documentation.
The Case Against
Your income is almost certainly in cedis. Your rent, food, school fees, and daily costs are in cedis. A large dollar position introduces currency risk in the opposite direction: if the cedi strengthens (as it did in parts of 2023), your dollar savings are worth fewer cedis when you convert back. You're speculating on the exchange rate even if you don't think of it that way.
Also, dollar interest rates globally are not as attractive as Ghanaian cedi rates. A USD savings account in Ghana might pay 2–4% per year. A 91-day cedi T-bill pays 27%. The cedi has to depreciate by more than 23% in a year before the dollar account wins on a pure return basis — which has happened (2022) but isn't guaranteed every year.
A Balanced Approach for 2026
Most financial advisors in Ghana suggest a currency split rather than going all-in either direction:
70–80% in cedi instruments (T-bills, unit trusts, stocks) — earn the higher local rates
20–30% in dollar instruments (FCA, USD unit trust, or physical USD) — hedge against severe cedi depreciation
The exact split should reflect your dollar exposure in expenses and your tolerance for exchange rate volatility. If you're saving for a child's university fees abroad in three years, the dollar weighting should probably be higher. If all your major expenses are local, the cedi position makes more sense.
What Dollar Instruments Are Available?
Foreign Currency Account (FCA) at a licensed Ghanaian bank — interest paid in USD, typically 2–4% per year
USD-denominated unit trusts — available from some licensed fund managers
Eurobonds — Ghana government bonds denominated in USD, though recent restructuring has complicated this market
USD cash holding — the simplest hedge, though cash earns nothing
Dollar-denominated investing in Ghana is a legitimate tool in a diversified approach. It's not a blanket recommendation for everyone, and it's not a replacement for building a solid cedi savings and investment base.