The Ghana cedi has emerged as Africa’s best-performing currency for the first eight months of 2025, according to the World Bank’s Africa’s Pulse October 2025 Report.

The Bretton Woods institution revealed that the cedi appreciated by about 20% year-to-date, outpacing all other African currencies.

The report attributes this rally to tight fiscal and monetary policies, rising export revenues, and improved investor confidence in the Ghanaian economy.This marks a sharp turnaround from 2024, when the cedi depreciated by roughly 19% against the US dollar.

The World Bank’s assessment highlights Ghana’s progress in stabilizing its currency and strengthening macroeconomic fundamentals amid persistent global and domestic challenges.

“Ghana’s currency appreciation is a reflection of improved market sentiment and effective policy coordination between fiscal and monetary authorities,” the report stated.

Policy Reforms Anchor Cedi’s Strength

The cedi’s impressive rebound follows deliberate reforms implemented by the Bank of Ghana (BoG) and the government under the IMF-supported economic recovery programme.

The BoG maintained a tight monetary policy stance to rein in inflation, while the government pursued fiscal consolidation to reduce deficits.

In parallel, the central bank strengthened foreign exchange reserves through the Domestic Gold Purchase Programme and the Gold-for-Oil initiative, enhancing market confidence in the local currency.Analysts note that prudent fiscal management and monetary tightening have been the twin pillars supporting the cedi’s resurgence

Rising Exports and Investor Inflows Boost Performance

Higher export revenues from cocoa, gold, and crude oil, coupled with increased foreign investment inflows, have improved Ghana’s external balance and bolstered the cedi.The World Bank report noted that these dynamics have enhanced the credibility of Ghana’s macroeconomic framework, creating a favorable environment for currency stability.Improved investor sentiment has also been a key driver. As Ghana’s outlook brightened, demand for cedi-denominated assets surged, particularly among yield-seeking foreign investors in emerging markets.Across the continent, the cedi’s performance stood out.

The Zambian kwacha ranked second, appreciated by about 16% year-to-date. In contrast, major African currencies such as the South African rand and Nigerian naira remained under pressure from weak commodity prices and inflationary pressures.

At the other end of the spectrum, the South Sudanese pound and Ethiopian birr were the weakest performers, recording double-digit declines in 2025.The divergence, according to the World Bank, underscores the importance of sound macroeconomic policies and structural reforms in achieving currency stability across Africa.

Volatility Returns in Late Q3

Despite the strong year-to-date performance, the cedi experienced some volatility between late July and September 2025, shedding about 19% after an earlier peak appreciation of 40.5% in July.

Market analysts attributed this to profit-taking and short-term corrections in the foreign exchange market.As of September 2025, the Bank of Ghana’s Summary of Economic and Financial Data showed the cedi trading at GH¢12.15 per US dollar on the interbank market, with retail market rates averaging around GH¢13.60.Even with the pullback, the cedi remained one of Africa’s best-performing currencies, reflecting the resilience of Ghana’s economic recovery efforts.