The Ghanaian cedi has experienced a remarkable 42% surge against the US dollar in 2025, making it the world’s top-performing currency so far this year. This unexpected rally has provided a crucial lifeline for the country as it continues to recover from a debt crisis. However, the question remains: what sparked this surge, and is it sustainable in the long run?
The rally is attributed to several key factors. Analysts have pointed to Ghana’s adherence to the International Monetary Fund (IMF) program, a strict monetary policy by the Bank of Ghana, and a surge in gold prices. The country, Africa’s largest gold producer, has benefited directly from global record-high gold prices, which have strengthened its foreign exchange reserves. Investment bank JPMorgan highlighted Ghana’s “gold windfall,” noting that gold prices hit a series of record highs by April 2025.
Additionally, the government’s commitment to the IMF program and its tight control over monetary policy have been crucial in driving the cedi’s rise. Tellimer’s Hasnain Malik attributed the rally to these measures but also expressed caution, pointing out vulnerabilities such as potential drops in oil and cocoa prices.
Ghana’s central bank governor, Johnson Asiama, further clarified that the rally was not the result of intervention using the central bank’s reserves. Instead, he credited disciplined foreign exchange auctions, stricter policies, and improved remittance inflows for the cedi’s appreciation.
Local investors in Ghana have also played a role in strengthening the cedi by converting their US dollar holdings back into the local currency, according to Capitulum Asset Management’s Lutz Röhmeyer. However, both Röhmeyer and Malik have raised concerns that the rally may not last, given potential external risks and underlying economic fragilities.
The surge of the cedi contrasts sharply with the performance of several other African and emerging market currencies, many of which have weakened in 2025 due to the global strength of the US dollar, fluctuations in commodity prices, and inflation pressures.
This impressive rally comes after Ghana’s debt crisis, which saw the country default on its Eurobond interest payments in late 2022. The government subsequently sought debt relief under the G20 Common Framework and secured a \$3 billion bailout from the IMF in May 2023. The focus of the bailout has been on implementing structural reforms and restoring macroeconomic stability.
Looking ahead, analysts are divided on what this rally means for Ghana’s future. Some believe that the cedi’s rise offers an opportunity for the country to reinvest in key sectors and reduce its reliance on external borrowing. Others warn that the rally may reverse unless the country maintains strong export performance and controls inflation.
With Ghana’s elections approaching in 2026 and the need to revive economic growth, how the government manages this unexpected surge will be key to determining whether the cedi’s rise is a short-term anomaly or a sustainable turning point for the Ghanaian economy.
Related Topics:
