Ghana’s cedi may have become the world’s top-performing currency in 2025, but analysts warn that its recent gains reflect recovery, not resilience.
The Ghanaian cedi has emerged as the world’s best-performing currency in 2025, appreciating over 25 percent against the U.S. dollar, according to Bloomberg data. However, financial analysts warn the rebound is more of a correction than a sign of long-term economic strength.
The currency’s rally comes after a steep decline in 2022, when the cedi lost more than 55 percent of its value amid inflation, debt concerns, and fiscal instability. “What we are currently seeing is a form of recovery. However, it’s important to understand this is not necessarily a sign of sustained strength,” said Johnson Chukwu, CEO of Cowry Asset Management.
Fitch Ratings recently upgraded Ghana’s foreign-currency issuer rating from ‘Restricted Default’ to ‘B-’, citing improved investor confidence. This improvement has been supported by a $3 billion IMF credit program, rising global prices for gold and oil, and reforms in foreign exchange policy.
“Ghana’s external reserves have steadily grown, supported by increased gold and oil export earnings,” said Marvellous Adiele, portfolio manager at Parthian Capital.
Still, a dollar shortage and renewed pressure on the cedi—trading at GH¢10.28/$ in May—underscore ongoing volatility and fragile liquidity in Ghana’s financial system.