Ghana's Cedi Becomes World's Best-Performing Currency in 2025

8 June 2025
Daba Finance (Abidjan)

TLDR

  • Ghana's cedi has gained nearly 50% against the US dollar in 2025, making it the strongest-performing currency globally this year
  • Starting the year at ₵15 to the dollar, the currency appreciated steadily to ₵10.21 by early June
  • The appreciation is driven by improved investor sentiment, record gold export earnings, and tighter monetary policy

Ghana's cedi has gained nearly 50% against the US dollar in 2025, making it the strongest-performing currency globally this year, according to Bloomberg data. Starting the year at ₵15 to the dollar, the currency appreciated steadily to ₵10.21 by early June.

The appreciation is driven by improved investor sentiment, record gold export earnings, and tighter monetary policy. The Bank of Ghana raised its benchmark interest rate by 100 basis points in March to 28%, helping to rein in inflation, which eased to 21.2% in April. A shift to spot-market forex auctions has also improved dollar liquidity and curbed speculative activity.

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Ghana's external position has strengthened, supported by gold, oil, and non-traditional exports. Gold exports rose from $7.6 billion in 2023 to $11.6 billion in 2024, aided by global price gains and domestic policies requiring cedi-based gold purchases. Foreign reserves reached $11.4 billion in March 2025.

Support from a $3 billion IMF programme and fiscal reforms--including a freeze on arrears payments and reduced Treasury bill yields--has helped restore macroeconomic stability.

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Key Takeaways

The cedi's rally marks a dramatic reversal from its 2022 collapse, when it lost over 55% of its value and ranked as the world's worst-performing currency. Today's gains reflect not only short-term fixes, but deeper structural changes. Ghana's government, under President Mahama, has prioritised stability through fiscal tightening, debt management, and a stronger focus on export-led growth. The Gold for Oil policy, increased central bank reserves, and a shift to more transparent currency markets have reinforced macroeconomic confidence. Still, risks remain. Inflation is above the BoG's 6-10% target, and rising utility costs could delay monetary easing. Governor Johnson Asiama has cautioned against complacency, stressing that the goal is sustainable stability, not short-term gains. For investors, Ghana's rebound illustrates how coordinated policy action, natural resource windfalls, and IMF backing can restore credibility in frontier markets--especially those emerging from sovereign debt distress.

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