Ghana's cedi has been the world's best-performing currency in 2025, having gained some 42–50% in value against the United States dollar since January. The cedi, which was among the worst in recent years, made an impressive comeback, creating much-needed fiscal relief, easing foreign debt pressures, and drawing investors' attention to Ghana's economic turnaround.
/*A Stunning 40%+ Rally Year‑to‑Date*/
LSEG and Bloomberg data confirm that the cedi has strengthened from around GH₵15 to a dollar in early 2025 to near GH₵10.20–10.30—over a 40% appreciation. This extraordinary surge is unmatched in Africa and the emerging markets. The speed has caught analysts off guard and provided Ghana's government with additional fiscal space.
/*Drivers: Gold, Oil & IMF Support*/
Several factors are powering the boom. Gold production—ranking Ghana now among the world's top six producers—was driven by record prices, from $2,000/oz to around $3,400/oz, driving export revenues up. Foreign reserves have also been driven by more robust oil and non-traditional exports; by March, reserves had hit a record $11.4 billion. The IMF's $3 billion bailout, along with tight fiscal reforms, also underpinned confidence.
/*Tight Policy & Market Reforms*/
The Bank of Ghana has tightened monetary policy sharply—raising its policy rate by 100 bp to 28% in March to control inflation, which slowed to 21.2% in April. The central bank also changed to an open spot-market forex auction system, which improved liquidity and controlled speculative pressure. Importantly, the officials state that this strength did not result from running down reserves.
/*Economic Spending Power & Risks Ahead*/
A stronger cedi lowers import costs—decreasing inflation and easing living expenses, especially for food and petroleum—helping consumers and businesses. It also eases Ghana's foreign-debt servicing—President Mahama announced debt decrease by almost ₵150 billion in five months. But the rebound is with warning: central bank officials stress that stability should not adversely affect competitiveness or export performance. A fall in commodity prices or inflationary pressures threaten this momentum.