Ghana’s currency, the Cedi, has delivered an impressive performance in 2025, emerging as one of the world’s strongest currencies. The Cedi’s surge is attributed to soaring gold prices, disciplined government spending, and a new state-led gold buying strategy.
Key Factors Driving the Cedi’s Strength:
– Gold Exports: Ghana’s gold exports have boomed, with prices reaching record highs, lifting export earnings and strengthening foreign-exchange inflows.
– Fiscal Reforms: The government has implemented tight fiscal policies, including reduced spending and improved tax collection, boosting investor confidence.
– GoldBod Initiative: The state-backed GoldBod institution buys gold from small-scale miners, formalizing exports and increasing state revenue.
The Cedi’s performance has been remarkable, with a 41% gain against the US dollar in 2025, its first annual rise since 1994. This makes it the second-best performing currency among 144 tracked worldwide.
Economic Impact:
– Inflation Control: The stronger Cedi has helped ease inflation.
– Investor Confidence: Ghana’s restructured dollar bonds returned over 30% in 2025.
– Equity Market: The Ghana Stock Exchange Composite Index rose 79% in local currency terms and 152% in dollar terms.