The Ghana cedi has taken a sharp hit, becoming the worst-performing currency in the world in the third quarter of 2025, according to a Bloomberg report.
This marks a dramatic turnaround. Just five months ago, in April, Bloomberg crowned the cedi the world’s best-performing currency after it gained 16% against the US dollar in the early part of the year. That rally boosted confidence and helped bring inflation down to 21.2%, its lowest in eight months at the time.
But momentum has now reversed. The cedi, which rode on strong gold prices earlier in the year, has weakened by 13% this quarter — the steepest fall of any currency globally. This decline has already erased part of the 50% surge recorded between April and June.
What’s Driving the Fall?
Ghana’s heavy reliance on imports means businesses need more dollars to pay for goods — from food supplies to machinery. Toward the end of the year, this demand rises further as companies prepare for the Christmas season.
With limited foreign exchange supply from the Bank of Ghana, pressure on the cedi has grown.
Hamza Adam, Head of Market-Risk Management at UMB Bank, explained that banks requesting dollars from the central bank recently received only half of what they applied for. “This week the central bank is trying to meet all demand,” he told Bloomberg by phone from Accra.
How the Cedi Compares Globally
Bloomberg data shows the cedi’s losses outpaced several struggling currencies worldwide:
- Ethiopian birr: -4.1%
- Chilean peso: -4.3%
- Dominican peso: -5.6%
- Botswana pula: -7.7%
- Argentine peso: -11.5%
- Ghanaian cedi: -13.4%
As of early trading in Accra on September 3, the cedi slipped slightly further, trading at GH¢11.9507 per US dollar.
Central Bank Response
Despite the slide, the cedi has still gained about 23% so far in 2025. Ghana’s foreign reserves also reached a three-year high of $11.1 billion at the end of June.
In a statement, the Bank of Ghana reassured the public that its role is to manage volatility:
“The cedi should be stable within a reasonable range. Our role is to ensure fluctuations remain orderly, that they reflect fundamentals, and that they do not undermine confidence in the broader economy.”
From best performer to worst performer in just one quarter, the cedi’s sharp swing underscores the fragile balance of Ghana’s import-driven economy and the central bank’s tough challenge in keeping the currency steady.
Source: Bloomberg
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