In a surprising twist to the currency stories of 2025, Ghana’s cedi has emerged as the world’s best-performing currency, gaining nearly 40–50% against the US dollar between January and June. At a time when many African currencies, like Nigeria’s naira or Egypt’s pound, have struggled under the weight of inflation, devaluation, and forex (FX) scarcity, the cedi’s turnaround is raising eyebrows globally and sparking meaningful questions: What did Ghana do right? And what can other African countries learn?

A Currency on the Rise

The Ghanaian cedi started 2025 trading at around ₵15 to $1, but within months, it rallied to approximately ₵10 to $1. According to Bloomberg and several financial analysts, it has been the strongest currency globally in the first half of the year.

Unlike in 2022, when Ghana faced debt distress, runaway inflation, and an FX liquidity crisis, this year paints a different picture, one defined by strategic reforms, stronger exports, and restored investor confidence.

What’s Fueling the Cedi’s Rise?

1. Booming Export Revenue

Ghana’s economy is deeply reliant on commodities, but in 2024 and early 2025, it capitalized big time:

• Gold exports surged, bringing in over $11.6 billion, up from $7.6 billion in 2023.
• Cocoa and crude oil also performed better than expected, pushing up foreign earnings.
• These inflows provided much-needed FX liquidity in the economy, boosting the cedi’s value.

2. Smart Central Bank Moves

The Bank of Ghana played its part effectively:

• It increased interest rates to 28%, attracting both local and foreign investors back to cedi-denominated assets.
• The bank also ran frequent FX spot auctions, creating transparency and injecting confidence into the currency market.
• Over $490 million was injected into the economy through FX support tools and interventions.

3. IMF Support and Fiscal Discipline

In 2023, Ghana secured a $3 billion bailout deal from the IMF. By 2025, disbursements had been made, reforms were underway, and debt restructuring progress was visible.

• Ghana resumed payment of arrears and engaged in credible fiscal tightening.
• FX reserves rebounded to $11.4 billion by March 2025.
• The country also cut its domestic borrowing rates, signaling a more stable economic outlook.

What This Means for Nigeria and Other African Nations

Ghana’s FX turnaround is a lesson in cause and effect: when monetary, fiscal, and export policies align, currencies stabilize.

Here’s what other African economies, especially Nigeria, can take away:

• Diversify Exports: Ghana’s gold boom shielded it from single-commodity dependence. Nigeria must look beyond oil.
• Transparent FX Policy: FX auctions and forward guidance can rebuild market trust.
• Strong Reserves Matter: A well-funded reserve gives confidence to investors and cushions currency shocks.
• Investor Trust Is Currency: Consistency in policy attracts capital. Flip-flops push it away.

What Businesses Should Do

If you run a business in Nigeria or anywhere across Africa, Ghana’s success story should be a reminder that FX planning is no longer optional. It’s mission-critical.

At Bluebulb, we help businesses simplify their cross-border payments with:

• Real-time foreign exchange solutions
• Cross-border payments 
• Liquidity and treasury management 

A New Playbook for Africa?

Ghana’s cedi comeback may not last forever, after all, currency markets are volatile, but it’s proof that economic turnarounds are possible with the right mix of policy, discipline, and confidence.

Nigeria and its peers can rewrite their own FX story. The key is bold leadership, clear communication, and a strong commitment to economic reforms.