Ghana’s national currency, the cedi, has made a strong comeback in 2025, emerging as the best-performing currency in West Africa and gaining recognition globally. This improvement in the cedi’s value has surprised many financial analysts and policymakers across Africa, who are now paying close attention to Ghana’s economic strategies.
Between March and May 2025, the cedi recorded steady gains against major foreign currencies. According to data from the Bank of Ghana, the cedi appreciated from GH¢15.53 to GH¢13.09 per US dollar. It also rose from GH¢20.09 to GH¢17.42 against the British pound and from GH¢16.96 to GH¢14.74 against the euro. This appreciation has made the cedi one of the strongest currencies in the world in the first half of 2025.
One of the main reasons behind the cedi’s improved performance is the Bank of Ghana’s decision to increase its gold reserves. The central bank, led by Dr. Ernest Addison, increased its gold holdings by 40.6 percent between May 2024 and April 2025, moving from 22.3 tonnes to 31.2 tonnes. This move helped to boost investor confidence and provided a strong reserve backing for the cedi. The gold reserves act as a form of insurance for the currency, giving it more value and helping it resist pressure from external economic shocks.
Ghana’s export performance has also played a major role in supporting the cedi. In the first two months of 2025, the country exported over $2.3 billion worth of gold, which is the highest export value recorded in more than ten years. This happened as international gold prices climbed above $3,000 per ounce. In addition, cocoa exports grew from $600 million to $800 million during the same period, thanks to high global demand and better prices. These exports have brought more foreign currency into the country, further supporting the strength of the cedi.
The rise in the cedi’s value is already having an effect on the Ghanaian economy. The Chamber of Oil Marketing Companies (COMAC) announced that pump prices of fuel are expected to drop from Friday, May 16, 2025. This is because the cedi’s strong performance has reduced the cost of importing refined petroleum products. Lower fuel prices could ease the pressure on consumers and help reduce the cost of transportation and goods.
However, economic experts are advising that the benefits of the cedi’s appreciation may take time to reflect in the general cost of living. Professor John Gatsi, who is the Dean of the University of Cape Coast School of Business, said the fall in prices of goods and services will only happen if the cedi continues to remain strong for a longer period. He added that businesses and importers will need time to adjust their prices based on the new exchange rates.
The Ghanaian government, through the Ministry of Finance, has expressed optimism about the currency’s progress. Finance Minister Dr. Mohammed Amin Adam Forson stated that the current appreciation is not a nine-day wonder but the result of deliberate planning and sound economic decisions. He said the government will continue to implement policies that will keep the cedi stable and support the broader economy.
While Ghana still faces challenges such as inflation and high debt levels, the recovery of the cedi shows that focused and strategic planning can bring results. The situation is also giving hope to other West African countries that are struggling with weak currencies and economic pressure. As Ghana’s economy continues to respond positively, many will be watching to see if this trend can be sustained in the coming months.
