Ghana’s Cedi Is Now The World’s Strongest Currency, Gaining 42% Against The Dollar In 2025

Ghana’s currency, the cedi, has taken the global financial stage by surprise in 2025, emerging as the best-performing currency in the world. Since the beginning of the year, the cedi has gained close to 42% against the US dollar, a remarkable shift that reflects growing confidence in Ghana’s economic recovery and stability.

The year began with the cedi trading at around GH₵15 to the dollar. Today, it sits just above GH₵10, marking a dramatic turnaround that has drawn the attention of investors and financial analysts worldwide. Data from Bloomberg confirms that no other currency has matched the cedi’s performance this year a striking reversal for a currency that was the world’s worst performer just three years ago.

Several factors have contributed to the cedi’s impressive rise. Strong export earnings from gold and oil have been crucial, with gold prices reaching $3,400 per ounce in May up from $2,000 in 2024. Ghana, now ranked as the sixth-largest gold producer globally, saw its gold export revenues rise significantly from $7.6 billion in 2023 to $11.6 billion in 2024. A government policy requiring gold to be purchased in cedis before export has further supported the local currency, increasing Ghana’s gold reserves from 9 tonnes in late 2023 to 31 tonnes this year.

Ghana’s broader export sector has also shown resilience. Oil and non-traditional exports have helped push the country’s trade surplus to $4.3 billion in 2024, its highest in years. These improvements come on the back of a $3 billion support program from the International Monetary Fund, which has provided both financial relief and technical guidance as part of a three-year recovery plan aimed at restoring macroeconomic stability.

Monetary policy has also played a key role. The Bank of Ghana raised its policy rate to 28% in March with the goal of curbing inflation and encouraging foreign investment. Inflation, which had surged in previous years, eased to 21.2% in April. The central bank also restructured its approach to foreign exchange auctions, replacing previous controls with spot-market sales. This move helped ease dollar shortages and reduced speculative behavior in the market.

Investors have responded positively to the country’s improving fundamentals and political stability under the administration of President John Mahama, whose government has implemented a series of reforms aimed at restoring economic confidence. Efforts to consolidate public finances, including a freeze on GH₵65 billion in arrears payments and a sharp reduction in Treasury bill rates, have also helped restore trust in Ghana’s economic management.

Despite the positive momentum, officials are approaching the cedi’s gains with caution. Bank of Ghana Governor Johnson Asiama warned against becoming complacent, stating that stability must be balanced with maintaining export competitiveness. Economists have echoed this sentiment, noting that inflation remains above the central bank’s target range of 6 to 10 percent, and that premature easing of interest rates could jeopardize recent progress.

Still, the cedi’s surge in 2025 is a powerful symbol of Ghana’s resilience and the impact of coordinated economic policy.