Ghana Cedi Surge shocks Markets, Outshines Naira, Dollar

Ghana Cedi Surge Shocks Markets, Outshines Naira, Dollar

Ghana cedi surge has caught global attention as the West African currency soared to its strongest level in 2025, shaking up the foreign exchange landscape and leaving the US dollar, euro, British pound, and Nigerian naira in its dust.

This rally has turned heads in Accra and beyond. Ghanaians who once watched the cedi slide are now witnessing a dramatic turnaround. In early May, the currency strengthened to GHS13.10 per US dollar, the highest rate in a year. That’s a sharp leap from the GHS15.50 it hovered around between February and April.

Compared to the start of the year, this is more than just a market shift—it’s a national economic boost.

The Ghana cedi’s rise didn’t happen by luck. It gained power due to strong export earnings from gold and cocoa. These two natural resources remain the heart of Ghana’s export economy. Between January and February alone, Ghana earned more than $2.3 billion from gold exports—its biggest gold earnings in over a decade. Global gold prices hit over $3,000 per ounce, helping to drive this gain.

Cocoa earnings also went up, rising from $600 million to $800 million, thanks to high global demand and better pricing. These exports brought in more foreign currency and strengthened Ghana’s reserves, giving the cedi a solid base to rise.

Ghanaians are now hopeful that the surge will make imported goods cheaper in the markets. The cost of fuel, food, and electronics—often priced in dollars or euros—might soon dip if the trend continues.

Settor Amedik, the head of financial stability at the Bank of Ghana, said, “The recent appreciation reflects stronger forex inflows from gold, cocoa and oil. There’s also been a notable increase in remittances.”

Many observers believe that even though the central bank didn’t directly intervene in the forex market, some indirect support helped the rally. In April, the government injected GHS490 million to settle energy sector debts. That cash created liquidity in the market, making the cedi more stable.

Ghana also increased its gold reserves to 31.37 tonnes. This added cushion made foreign investors and local businesses feel more confident in the cedi. As a result, it gained further ground.

The global picture also helped. The US dollar has been weakening as investors grow nervous about President Donald Trump’s renewed trade tensions. As the greenback slips, investors look for better options. Emerging market currencies like Ghana’s cedi are suddenly attractive again.

Back home, the government has taken firm steps to show fiscal responsibility. It rejected high-interest offers in recent treasury bill auctions, signalling that it wants to reduce debt rather than just borrow more. That move helped show that Ghana is serious about cleaning up its finances, further boosting market confidence.

Still, experts urge caution. Economic analyst Caleb Wuninti Ziblim in Accra said the rally is good news, but it must be handled carefully.

“The cedi’s sharp rise in 2022, when it briefly rallied from GHS14 to GHS9, was followed by a quick reversal. Sustaining this momentum will depend on Ghana’s ability to maintain its export earnings and avoid policy missteps,” he said.

He also warned that if gold prices fall or the US dollar regains strength, Ghana’s currency might lose its shine again. “The key question is whether this is a turning point or just a temporary reprieve.”

Meanwhile, Ghana’s closest currency rival, the Nigerian naira, is struggling. According to Legit.ng, the naira recently fell over N55 against the US dollar in the black market. This reversal came after weeks of recovery and has put pressure on Nigeria’s already fragile economy.

For now, Ghana cedi is leading the charge in Africa’s currency space. It is giving Ghanaians fresh hope for lower prices, a stronger economy, and a more stable future.

But like all financial wins, it must be guarded. The next few months will show whether the cedi can keep its strength or if this rise is just a temporary high.