The Bank of Ghana reported that the Cedi depreciated by 5.3% on the interbank market within the first three months of 2025.
However, its decline against the US dollar in the retail market was comparatively lower, standing at nearly 3.0%.
Africa’s strongest currencies
At the top of the rankings was Tunisia’s Dinar, which recorded an exchange rate of 3.09 per US dollar. The Libyan Dinar followed in second place, while Morocco’s Dirham, Botswana’s Pula, Seychelles’ Rupee, and Eritrea’s Nakfa secured the third, fourth, fifth, and sixth positions, respectively.
Ghana’s Cedi claimed the seventh spot, while Lesotho’s Loti, Namibia’s Dollar, and South Africa’s Rand completed the top ten rankings in eighth, ninth, and tenth places, respectively.
Currency stability and economic growth
The top five currencies exhibited a slight appreciation compared to their rankings in the previous month. According to Forbes, a stable and strong currency is a crucial economic asset, particularly for African nations aiming for long-term growth and global competitiveness.
A robust currency serves as a buffer against economic shocks, preserving purchasing power and bolstering investor confidence. One notable example is Kenya’s Shilling, which has remained relatively stable due to consistent foreign inflows from non-governmental organisations (NGOs) and remittances.
The economic outlook for the cedi
Despite its depreciation, the Cedi remains one of the strongest currencies on the continent, reflecting Ghana’s ongoing economic resilience and monetary policies. The government and financial institutions continue to implement measures to maintain currency stability and reduce volatility in the exchange rate.
As Africa’s economic landscape evolves, the strength of national currencies will play a vital role in shaping trade, investment, and overall economic growth in the region.
