The Ghanaian cedi has indeed become the world's strongest-performing currency in 2025, with a remarkable gain of nearly 50% against the US dollar.
This impressive surge is attributed to several factors, including:
Improved Investor Sentiment: The cedi's recovery reflects deeper structural changes, such as fiscal tightening, debt management, and a stronger focus on export-led growth under President Mahama's administration.
Record Gold Export Earnings: Ghana's gold exports rose from $7.6 billion in 2023 to $11.6 billion in 2024, driven by global price gains and domestic policies requiring cedi-based gold purchases. The country's gold reserves increased from 9 tons in late 2023 to 31 tons in May 2025.
Tighter Monetary Policy: The Bank of Ghana raised its benchmark interest rate by 100 basis points to 28% in March 2025, helping to rein in inflation, which eased to 21.2% in April.
IMF Support and Fiscal Reforms: A $3 billion IMF program has helped restore macroeconomic stability, with measures such as halting ₵65 billion in arrears payments and reducing Treasury bill yields.
Shift to Spot-Market Forex Auctions: The Bank of Ghana's transition to spot-market foreign exchange auctions has improved dollar liquidity and curbed speculative activity.
The cedi's value has appreciated steadily from ₵15 to the dollar at the start of the year to ₵10.21 by early June.
However, economists caution that risks remain, including inflation above the Bank of Ghana's 6-10% target and potential erosion of export competitiveness due to the cedi's strength.
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