How The Cedi Made A Remarkable Turnaround in 2025
The Ghanaian Cedi has been crowned the world’s best-performing currency by Bloomberg, appreciating 16% against the US dollar since April 2025. This marks a significant shift from its 2022 low, when it depreciated by 45%, earning the title of the worst-performing currency globally due to a debt crisis and high import costs. The turnaround, reported by JoyNews on May 9, 2025, reflects Ghana’s ongoing economic reforms and improved fiscal discipline.
The Cedi’s rally has directly impacted inflation, bringing it down to 21.2% in April 2025, the lowest in eight months. Lower import costs, particularly for petroleum products, have eased price pressures, though inflation remains above the central bank’s 6-10% target. Economist Joe Jackson, speaking on JoyNews’ Market Place, noted that this appreciation claws back some of the purchasing power Ghanaians lost over the past three years, when the Cedi fell from 6 to 16 against the dollar.
Global factors, including a weakened US dollar amid Trump-era tariff wars and falling petroleum prices, have supported the Cedi’s rise. Additionally, Ghana’s strategic moves, such as increasing gold reserves and reducing public expenditure, have positioned it to capitalize on these conditions. Rising gold and cocoa prices—key exports—further cushion the economy, despite concerns from some economists like Professor William Babati about potential export competitiveness risks.
Investor confidence is also on the rise, with Ghana’s dollar bonds returning 12% in 2025, outpacing the 3.6% average among emerging markets, according to Bloomberg. While challenges like sticky domestic prices persist, the Cedi’s performance offers a glimmer of hope for Ghana’s economic recovery, signaling that reforms are starting to bear fruit.