• As of October 2025, the Ghanaian cedi (GHS) maintained its position as one of Africa’s best‑performing currencies in 2025, gaining around 30%+ against the U.S. dollar in the first half of the year.
• The stronger cedi is lowering the local currency cost of imports and helping ease inflation pressures.
• But the appreciation also reduces the localy denominated value of foreign assets, raises the cost in cedi of servicing foreign‑currency working capital/debt, and suggests the need for monitoring.

Ghana’s cedi has recorded one of the sharpest recoveries among African currencies so far in 2025. By mid-year, the cedi had appreciated approximately 30 % against the U.S. dollar, bringing the rate from roughly GH¢15.56 per USD in early April to about GH¢10.28 per USD by June. This marked rebound has reduced the local currency cost of imported goods and inputs, helping ease inflationary pressures and providing short‑term relief for consumers and importers.

The Bank of Ghana highlighted that a weaker U.S. dollar and targeted FX interventions, including a US$490 million injection into the market in April, helped support the cedi’s gains, while gross reserves have grown toward USD 11 billion, providing a buffer against potential shocks. Official commentary emphasizes the uncertainty surrounding the full implications. The IMF has noted that the cedi’s appreciation may require revising Ghana’s programme targets, underscoring the unexpected nature of the surge.

Bank of Ghana officials have recognized that market sentiment is a significant driver of the sustained appreciation, and the Finance Ministry stressed that the movement is the result of careful planning rather than a sudden reaction. These statements highlight that even institutions closely monitoring the economy do not yet fully understand the downstream effects.

Looking ahead, Ghana’s cedi remains the strongest-performing currency in Africa in 2025. Other regional currencies such as the Ugandan shilling and Zambian kwacha are expected to remain stable or appreciate modestly, but none have matched the magnitude of Ghana’s gains. In 2025, the Ghanaian cedi appreciated by around 30% in H1, recovering from over GH¢15 per USD to approximately GH¢10.28 by June.

The Bank of Ghana noted the U.S. dollar index fell nearly 11% in the first half of 2025, helping support the cedi’s gains.  Ghana’s gross reserves are reported to approach USD 11 billion.  According to S&P Global, firms in Ghana in May 2025 recorded monthly reductions in both input costs and selling prices for the first time in five years, linked to the currency’s strength.

By Cynthia Ebot Takang