Ghana Cedi Crowned Africa’s Best-Performing Currency in 2025: Top 10 Rankings

In a remarkable turnaround, the Ghana cedi has emerged as Africa’s best-performing currency in 2025, appreciating by nearly 40% against the United States dollar, according to Bloomberg data. This exceptional performance represents a dramatic reversal for a currency that ranked among the world’s weakest performers just three years ago.

The cedi’s rally throughout 2025 signals more than impressive headline numbers. It reflects a fundamental shift in Ghana’s macroeconomic direction. The currency ended a three-decade trend of annual losses with an appreciation of about 40.7%, marking its first yearly gain since at least 1994, when comprehensive exchange rate records began. The cedi opened the year at roughly 14.7 to the dollar and strengthened to approximately 10.93 per dollar by the end of the year in the interbank market.

Bloomberg’s currency performance data shows that the cedi outperformed all other African currencies in 2025. The Congolese franc and the Zambian kwacha ranked second and third respectively, while the South African rand also recorded solid gains. However, none matched the consistency and momentum of the cedi over the year.

At the opposite end of the spectrum, Ethiopia’s birr was the worst-performing African currency in 2025, depreciating by more than 15% and placing Ethiopia at the bottom of the regional ranking.

Several policy interventions and favourable market conditions combined to drive the cedi’s recovery. Central to this resurgence was Ghana’s domestic gold purchasing programme, which significantly strengthened the country’s external position. The Bank of Ghana increased its gold reserves from about nine (9) tonnes in late 2023 to thirty-one (31) tonnes by 2025, benefiting from record-high global gold prices.

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The establishment of the Ghana Gold Board (GoldBod) in May 2025 further strengthened this effort by channelling production from small-scale miners into the formal economy. This boosted official gold purchases and helped push Ghana’s foreign reserves to $11.4 billion by October 2025, representing a 24% increase from the beginning of the year.

Fiscal discipline also played a key role. Ghana’s engagement under an International Monetary Fund programme restored credibility to its reform agenda. Tight monetary policy, including elevated interest rates, helped anchor inflation expectations. In March 2025, the Bank of Ghana surprised markets with a 100 basis-point increase, raising the policy rate to 28% in a bid to stabilise prices and absorb excess liquidity.

Improved external financing conditions, combined with stronger export earnings from gold and cocoa, provided steady dollar inflows. Reduced import demand, supported by tighter controls and improved domestic production, also helped ease pressure on the currency.

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The appreciation of the cedi delivered tangible benefits across the economy. Inflation eased to 21.2% in April 2025 from 22.4% in March, as lower import costs filtered through to prices. For an import-dependent economy, this helped reduce pressure on households and businesses.

A stronger cedi also improved Ghana’s debt position. With a significant portion of public debt denominated in foreign currency, currency appreciation lowered the local cost of servicing external obligations. This offered relief following Ghana’s domestic debt restructuring and negotiations with external creditors after the 2022 crisis.

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Currency stability has also renewed investor confidence, encouraging capital inflows into government securities and private sector investments. The cedi’s performance has become a signal of macroeconomic discipline and policy credibility.

The scale of the turnaround is striking. In 2022, the cedi lost more than 55% of its value amid surging inflation and a deepening debt crisis. Between 2020 and 2024, the currency depreciated by 62%, falling from GH¢5.60 to GH¢14.70 per dollar. Import costs surged, inflation accelerated, and Ghana was forced into comprehensive debt restructuring.

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The transition from that low point to Africa’s top-performing currency within three years highlights the impact of coordinated policy action, institutional reform, and favourable commodity prices. It demonstrates how economies emerging from sovereign debt distress can rebuild confidence through sustained macroeconomic discipline.

Looking ahead to 2026, sustaining the cedi’s strength will require continued discipline. Risks include fiscal slippage, commodity price volatility, and shifts in global investor sentiment. Any disruption to capital inflows or delays in external financing could test the currency’s resilience.

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Nevertheless, the cedi’s performance in 2025 stands as a notable achievement. It underscores how sound policy frameworks and credible reforms can reverse even severe currency distress, turning crisis into opportunity and laying the foundation for longer-term economic stability.