According to the World Bank’s most recent Africa Pulse Report, the Ghanaian cedi is still Africa’s best-performing currency eight months into 2025, despite a minor decline in recent weeks.
According to the research, the cedi has performed the best among African currencies, increasing in value by more than 20% since the year began.
According to the World Bank report, this impressive bounce can be attributed to increased export revenues, sound monetary policy, rigorous fiscal management, and rekindled investor confidence after Ghana’s debt restructuring was completed.
The second-best-performing currency was the Zambian kwacha, which increased by 16 percent because to continued efforts to settle debt, cheaper oil imports, and a better supply of US dollars.
Stronger export growth and reviving capital inflows helped Kenyan, Tanzanian, and Ugandan currencies enjoy modest rises as well.
Given its significant losses from the previous year, some analysts say the cedi’s recovery is especially noteworthy. The quickness of its recovery highlights how well Ghana’s economic reforms and better external circumstances worked.
A weaker U.S. dollar, rising commodity prices, and more favorable global financial circumstances are all credited by the World Bank with contributing to the wider strengthening of African currencies in 2025. These factors have all assisted in reducing inflationary pressures and stabilizing markets throughout the continent.
However, as firms boost imports ahead of the holiday season and hopes for election-related spending rise, the cedi has experienced some devaluation pressure in recent weeks.
In order to relieve demand pressures and maintain the stability of the cedi, the Bank of Ghana has responded by announcing intentions to pump roughly $1.15 billion into the foreign exchange market.
