Ghana’s Cedi Rises to Strongest Level in 2025, Outshines Naira, Dollar, Euro, Pound

• Ghanaian currency has improved against major currencies in the world to reach its strongest level this year
• The latest exchange rate increase has been attributed to the growth in export earnings from gold and cocoa surges
• Also, Bank of Ghana's weaker United States dollar and increased remittances supported the cedi's appreciation

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends

Ghana’s cedi has recorded a surprising rally over the past month, strengthening against every major global currency.

The currencies include the US dollar, euro, Chinese yuan, and Nigerian naira.

After months of relative stability, the cedi surged in early May to GHS13.10 per US dollar, its strongest level in a year.

This follows a period between February and April 2025, when it hovered around GHS15.50.

The rally, which also saw the pound sterling drop from GHS20.60 to GHS17.45 and the euro fall to GHS14.78 from GHS17.72, marks the longest stretch of appreciation for the currency in over three years.

Why Ghana cedi is on the rise?

The immediate driver of the rally is a surge in Ghana’s export earnings, particularly from gold.

In the first two months of 2025, the country exported over $2.3 billion worth of gold, the highest in more than a decade, as prices soared past $3,000 per ounce.

Cocoa revenues also climbed from $600 million to $800 million, buoyed by strong global demand and higher prices.

These two commodities, which together form the backbone of Ghana’s export economy, have significantly boosted the country’s foreign exchange reserves and strengthened the cedi.

Settor Amedik, the head of financial stability at the Bank of Ghana, said:

“The recent appreciation reflects stronger forex inflows from gold, cocoa and oil,” said“There’s also been a notable increase in remittances.”

While the central bank insists it has not directly intervened in the forex market, analysts point to signs of indirect support.

A GHS490 million cash injection in April to settle energy sector debts may have provided liquidity that helped stabilise the currency.

Ghana’s gold reserves have also increased to 31.37 tonnes, offering additional backing.

Globally, the weakening of the US dollar amid President Donald Trump’s renewed trade tensions has also played a role.

As investors reassess the greenback’s strength, emerging market currencies like the cedi have benefited.

More reasons why cedi is gaining

Domestically, Ghana’s government has signalled fiscal discipline by rejecting high-interest bids in the treasury bill market, reinforcing its commitment to reducing debt accumulation.

Despite the current gains, analysts warn that the recovery could prove fragile.

An Accra-based economist, Caleb Wuninti Ziblim, explained:

"The cedi’s sharp rise in 2022, when it briefly rallied from GHS14 to GHS9, was followed by a quick reversal. Sustaining this momentum will depend on Ghana’s ability to maintain its export earnings and avoid policy missteps.

“The key question is whether this is a turning point or just a temporary reprieve. If gold prices dip or the dollar regains strength, the cedi could face renewed pressure.”

Naira exchange rate falls

In an earlier report by Legit.ng, the Nigerian currency crashed against the US dollar in the black foreign exchange markets.

Traders expressed that at the parallel exchange market, the naira's value fell by over N55. The latest exchange rate movement was a reversal from the naira's performance in the past few weeks.

Source: Legit.ng