Ghana’s Cedi makes history: Ranked world’s top performing currency by Bloomberg

The Ghana cedi has been named the world’s best-performing currency this month, following the significant appreciation of 16 per cent against the US dollar since the start of April 2025, according to  Bloomberg.

The currency’s strength has alleviated inflation concerns, contributing to Ghana’s lowest inflation rate in eight months. As of today, the cedi is trading at GH₵13.4 against the dollar.

Government Statistician Alhassan Iddrisu announced in Accra on Wednesday that the consumer price inflation decreased to 21.2 per cent in April, all the way from 22.4 per cent in March. Monthly price increases slowed to 0.8 per cent, fuelled primarily by the falling import costs due to the cedi’s strength.

Non-food inflation fell to 17.9 per cent from 18.7 per cent, while food inflation also eased, decreasing to 25 per cent from 26.5 per cent. “A rally in the cedi reduced the cost of imports,” Iddrisu confirmed, due to the currency’s appreciation contributing to a recent decline in inflation.

Bloomberg data showed that from the start of April, the cedi has outperformed all global currencies in terms of gains against the US dollar, strengthening consumer morale and relieving pressure on the cost of imported goods.

Regardless of this progress, analysts say it’s not likely that the Bank of Ghana will rapidly decrease interest rates at its upcoming policy meeting. Dr Agyapomaa Gyeke-Dako, an economist and senior lecturer at the University of Ghana Business School, said that “It tightened at its last meeting to mop up any excess liquidity. So now the central bank action going forward may not readily reduce the monetary policy rate yet because there might still be some threats to inflation coming from the hikes in utility prices.”

The Monetary Policy Committee (MPC) took the market by surprise in March with a 100-basis point increase, raising the key rate to 28% as part of efforts to stabilise prices. The central bank has indicated it will continue to assess inflation trends before moderating its view. Mark Bohlund, senior credit analyst at REDD Intelligence, cautioned that “Easier monetary conditions could rekindle inflationary pressures.” This means the Bank of Ghana may hold back on any near-term rate cuts.

However, there is realistic hopefulness for rate relief later in the year if disinflation continues. Governor Johnson Asiama said after the March meeting that “As the monetary authority sees the next readings of inflation and we see declines, the committee will reassess the scope for a gradual easing in the policy stance.”

Inflation in Ghana has maintained a level above the central bank’s target band of 6 per cent to 10 per cent since September 2021, after a debt crisis that sparked a swift depreciation in the cedi and sent import costs rising. The MPC forecasts inflation might drop to approximately 16% by the end of 2025 and slowly come back within the target range by the second quarter of 2026.

The International Monetary Fund (IMF), which is in close coordination with Ghana under a support programme, also expressed optimism. During a recent briefing in Washington, Stéphane Roudet, IMF Mission Chief to Ghana, said that “It makes us very confident that inflation is going to go down in the next few months toward the programme objectives.”

As the West African nation continues measures to boost economic stability, the rebound of the cedi has gained recognition as a bright spot, both as a sign of strength and as a tool for rebuilding.

READ: Ghana’s inflation rate drops to 21.2% in April 2025- Economic trends