The Ghanaian cedi has been named Africa’s seventh strongest currency in the first quarter of 2025, according to a Forbes currency index report, trading at GH₵15.48 to the US dollar.
Despite this ranking, the cedi depreciated 5.3% on the interbank market and 3.0% in retail markets during the quarter, reflecting broader global economic pressures and domestic policy challenges.
The Bank of Ghana attributed the cedi’s performance to fluctuating global market conditions and ongoing efforts to stabilize the economy through monetary interventions. Analysts note that while the depreciation underscores vulnerabilities, its top-ten continental ranking highlights relative resilience compared to peers.
Forbes emphasized that currency stability remains critical for African economies to mitigate inflation and attract foreign investment. Kenya’s shilling, for instance, maintained steadiness due to consistent remittance inflows and NGO funding, a model Ghana could emulate through enhanced foreign exchange reserves and trade policies.
Regional Currency Rankings
Tunisia’s dinar led the continent at 3.09 to the dollar, followed by Libya’s dinar (2nd), Morocco’s dirham (3rd), Botswana’s pula (4th), and the Seychelles rupee (5th). Eritrea’s nakfa (6th), Ghana’s cedi (7th), Lesotho’s loti (8th), Namibia’s dollar (9th), and South Africa’s rand (10th) rounded out the top ten. Most top currencies showed modest gains, signaling economic durability in their respective markets.
Ghana’s mixed results come amid efforts to balance fiscal reforms with growth targets. While the cedi’s depreciation poses challenges for import-dependent sectors, its regional standing reflects progress in curbing volatility. The government aims to bolster stability through export diversification and tighter monetary controls, though analysts caution that global commodity shifts and debt management will dictate near-term outcomes.
The report underscores the broader African context, where currency strength remains tied to external reserves, remittance flows, and geopolitical stability. As Ghana navigates these dynamics, maintaining a competitive exchange rate will be pivotal for sustaining investor confidence and economic recovery.
—With data from Bank of Ghana and Forbes Africa Currency Index
