New Year: Ghana cedi makes historic gains against the US dollar

Ghana’s local currency, the Ghana cedi (GH¢), has recorded an annual gain against the United States dollar ($) for the first time in about 30 years.

According to Bloomberg, the cedi appreciated by 41% against the dollar in 2025, making it the second-best performing currency among 144 tracked by Bloomberg, after the Russian ruble. This level of performance has not been seen since Bloomberg began compiling currency data in 1994.

“Ghana’s currency posted an annual gain against the dollar for the first time in more than three decades as Africa’s biggest gold producer benefited from rising prices of the metal and the greenback’s weakness. The cedi has appreciated 41% against the dollar this year…That made it the best performer among 144 currencies tracked by Bloomberg after the Russian ruble,” the report stated.

The strong performance of the cedi is expected to continue into 2026. One key factor is the Bank of Ghana’s purchase of gold, which increased the country’s gross international reserves by 24% to $11.4 billion as of October 2025.

The report also highlighted the role of the Ghana Gold Board (GoldBod), established to regulate gold purchases in the country. By buying gold from small-scale miners, GoldBod has helped channel output into the formal economy and reduce smuggling.

“Ghana’s central bank has been increasing purchases of bullion, helping lift gross international reserves by 24% to $11.4 billion as of October, from the start of the year. In May, the government established an institution known as GoldBod to buy the metal from small-scale mines, a move that has helped direct their output into the formal economy and curb smuggling,” the report said.

Sam Singh-Jami, head of Africa research and strategy at Rand Merchant Bank, noted that “‘Improved official gold flows via the GoldBod and rising reserves’ played a key role in supporting the currency.”…CONTINUE MORE READING>>>