- The Ghanaian cedi, once hailed as the world’s best-performing currency earlier this year, has suffered a sharp reversal, dropping 13.4% in the third quarter.
- The decline is driven by surging demand for dollars from import-heavy businesses and limited foreign exchange supply from the Bank of Ghana.
- Despite strong reserves and a year-to-date gain of 23%, the cedi now ranks as the worst-performing currency globally this quarter.
After a brief stint at the top of global currency charts, the Ghanaian cedi has taken a steep dive, becoming the worst-performing currency in the third quarter of 2025. The reversal comes just months after it was celebrated for its 50% rally between April and June, driven by strong gold prices and investor confidence.
The current downturn is largely attributed to a surge in dollar demand from companies racing to settle import bills ahead of the festive season. Ghana’s economy, heavily reliant on imported goods, typically sees a spike in foreign exchange needs toward the end of the year. This seasonal pressure has collided with a constrained supply of dollars from the Bank of Ghana, which has been unable to meet full demand from commercial banks.
The strain has pushed the cedi down by 13.4% this quarter, outpacing losses in other emerging market currencies including the Argentine peso, Botswana pula, and Ethiopian birr. The local currency was last recorded trading at GH¢11.9507 per dollar.
Despite the recent slide, the cedi remains up 23% for the year, buoyed by earlier gains. Ghana’s gross international reserves also climbed to $11.1 billion in June — the highest in three years — but the central bank has opted for a cautious release strategy, aiming to maintain orderly market conditions rather than flood the system with foreign currency.
The sharp swing in performance has reignited debate over Ghana’s forex management, with traders and analysts warning that continued pressure could undermine inflation control and investor sentiment. As businesses brace for the final quarter, all eyes are on the central bank’s next move to stabilize the currency.
