Despite a minor decline in recent weeks, the Ghana cedi continues to be recognized as Africa’s leading currency eight months into 2025, as reported by the World Bank’s latest Africa Pulse Report.
The report indicates that the cedi has appreciated by over 20 percent since the beginning of the year, marking the strongest performance among African currencies.
The World Bank attributes this impressive surge to disciplined fiscal management, prudent monetary policy, increased export receipts, and renewed investor confidence following Ghana’s successful debt restructuring.
The Zambian kwacha ranks as the second-best performer, having appreciated by 16 percent, supported by ongoing debt resolution efforts, reduced oil import costs, and an enhanced supply of U.S. dollars.
Currencies in Kenya, Tanzania, and Uganda have also experienced moderate gains, bolstered by stronger export growth and recovering capital inflows.
Some analysts suggest that the cedi’s recovery is particularly noteworthy given its significant losses last year. The speed of its rebound highlights the effectiveness of Ghana’s economic reforms and improved external conditions.
The World Bank credits the overall strengthening of African currencies in 2025 to a weaker U.S. dollar, rising commodity prices, and more favorable global financial conditions, all of which have contributed to alleviating inflationary pressures and stabilizing markets across the continent.
Nevertheless, the cedi has encountered slight depreciation pressure in recent weeks, as businesses ramp up imports in anticipation of the festive season and increased election-related spending.
In response, the Bank of Ghana has revealed plans to inject approximately $1.15 billion into the foreign exchange market to alleviate demand pressures and maintain the cedi’s stability.
Market observers, however, caution that the sustainability of the currency’s gains will hinge on Ghana’s ongoing commitment to fiscal discipline, export diversification, and structural reforms aimed at consolidating macroeconomic stability.
