The Metro Lens

Tag: Cedis

  • Africa’s Strongest Currencies In 2025: Ghana’s Cedi Leads Amid Uneven FX Recovery

    Africa’s Strongest Currencies In 2025: Ghana’s Cedi Leads Amid Uneven FX Recovery

    In 2025, Africa’s foreign exchange market was shaped by selective recoveries rather than broad-based strength, with Ghana’s cedi emerging as the continent’s top performer against the US dollar.

    The Ghana cedi’s dramatic rebound led the way, followed closely by Zambia’s kwacha and the Congolese franc.

    Across the continent, FX movements reflected a mix of policy interventions, export-driven inflows, and peg-driven stability, showing that strong gains were achievable even in a volatile environment.

    Most other currencies experienced moderate appreciation or stabilization, highlighting the uneven nature of the market.

    Commodity-rich economies and disciplined macroeconomic policies were central to the strongest trends, while global dollar dynamics continued to influence outcomes.

    The Ghanaian cedi was Africa’s best-performing currency in 2025, appreciating by 28.6% against the US dollar to close the year at GHS10.50/$, up from GHS14.70/$ in December 2024.
    The currency recorded its strongest appreciation in May (-27.30%), followed by October (-12.80%), reflecting periods of heavy FX inflows, improved confidence around policy execution, and supportive commodity dynamics.

    By contrast, the cedi’s weakest months were August (11.43%) and September (6.84%), when depreciation pressures resurfaced amid seasonal FX demand and market corrections. The cedi’s rebound was driven by tight monetary policy, sustained FX interventions, and a $3 billion IMF programme that restored investor confidence. Strong gold export receipts and easing inflation further supported FX stability.

    Overall, 2025 marked a rare turnaround year for the cedi, positioning it as one of the fastest-appreciating currencies globally.

    The Zambian kwacha ranked among Africa’s strongest currencies in 2025, appreciating by 20.5% against the US dollar. Despite a volatile mid-year marked by FX pressures, the currency benefited from IMF-backed reforms, improved debt restructuring outcomes, and tighter monetary conditions.

    The currency recorded its strongest monthly gains in June (-9.50%) and October (-7.29%), reflecting moments of improved FX liquidity and reform-driven confidence.

    However, the kwacha weakened most sharply in November (3.80%) and August (3.52%), highlighting persistent vulnerability to FX shortages and external balance constraints.

    The kwacha’s performance reflected recovery momentum rather than sustained FX depth.

    The Congolese franc posted a 20.1% appreciation in 2025, supported by strong mineral export inflows, particularly copper and cobalt.

    The Congolese franc displayed relative calm early in the year before experiencing a decisive late-year adjustment. Its strongest appreciation occurred in October (-16.32%) and September (-5.47%), pointing to a significant FX correction likely linked to fiscal and liquidity realignments.

    In contrast, the weakest months were March (1.47%) and February (0.26%), periods characterised by mild depreciation pressures despite steady mineral inflows.

    Overall, the CDF’s annual gain was driven by commodity-linked FX inflows, though underlying fiscal and liquidity risks remain elevated.

    Used by: Cameroon, Central African Republic, Chad, Republic of the Congo, Equatorial Guinea, Gabon

    The Central African CFA franc appreciated by 12.8% in 2025, largely reflecting the euro’s strength against the US dollar, given the currency’s fixed peg.

    Across all six countries, the CFA franc followed an identical monthly trajectory shaped by its euro peg. The strongest appreciation was recorded in April (-4.81%) and March (-4.20%), coinciding with periods of euro strength against the US dollar.

    The weakest months were October (2.19%) and May (1.80%), when the currency depreciated modestly as the euro softened.

    While the stronger currency helped moderate imported inflation, gains were externally driven, offering stability rather than signaling domestic macroeconomic improvement.

    The rand appreciated by 12.1% in 2025, driven by improved global risk sentiment, firm commodity prices, and episodic capital inflows. However, performance was highly volatile, with frequent reversals tied to global market dynamics rather than domestic FX policy.

    The rand’s 2025 performance reflected its role as Africa’s most risk-sensitive currency. The strongest appreciation was recorded in May (-3.27%) and December (-3.19%), periods aligned with improved global risk sentiment and commodity price support.

    Conversely, the rand depreciated most sharply in July (2.62%) and April (1.65%), underscoring its exposure to capital flow reversals and shifts in investor positioning.

  • National Security Arrests 13 Black Market Operators in Osu and Tudu

    National Security Arrests 13 Black Market Operators in Osu and Tudu

    In a bid to stop further depreciation of the cedis and regulate forex trading, a joint national security task force comprising personnel from the Ghana Police Service, the National Intelligence Bureau, and the National Fusion Center of the Ministry of National Security, on 26th of July, 2024, conducted operations targeted at persons engaged in the illegal exchange of foreign currencies.

    The operations, which were conducted around Osu and Tudu, resulted in the arrest of 13 offenders and the retrieval of various sums of money.

    Amounts retrieved include:- USD17,840- CUSD1,450- Naira515,000- CFA1,167,000.
    Additionally, GHC419,685, €230, and 50 Egyptian pounds were also retrieved.

    The suspects and all exhibits have since been handed over to the police for investigation and prosecution.

    It is worthy of note that this operation will be conducted across the country in the coming days and is expected to help the Bank of Ghana regulate forex trading in the country

  • Editorial:The Ghana Cedi: Addressing the Current Forex Rate Crisis

    Editorial:The Ghana Cedi: Addressing the Current Forex Rate Crisis

    In recent months, the Ghana cedi has been facing significant challenges against the United States dollar, leading to a sharp depreciation that has garnered global attention. The currency is now considered one of the worst performing in the world, with its value plummeting rapidly. Despite this alarming trend, the Central Bank, responsible for safeguarding the country’s currency, has remained largely silent, prompting calls for action from Finance, the dollar is selling at – USDGHS: 13.9980

    • Inter-Bank Exchange Rate – End Period (GHC/US$): 12.0356, 12.4642, 12.8770, while the Ghana Cedis forex rates at the bureau s
    • US Dollar (USD):
      Buy rate: 14.70
      Sell rate: 15.20

    It is clear that the current situation is dire and demands urgent intervention.

    The root cause of the cedi’s depreciation lies in the rampant currency speculation that has plagued the Ghanaian economy for some time. The insatiable demand for foreign currencies, particularly the US dollar, has led to a situation where the dollar has become the preferred currency for many transactions, despite the illegality of such practices. Foreign nationals, particularly from neighboring Francophone countries, have taken advantage of this situation to manipulate exchange rates and profit at the expense of the Ghanaian economy.

    Furthermore, the prevalence of dollarization in key sectors such as real estate and travel agencies has further exacerbated the problem, making it difficult for ordinary Ghanaians to access essential goods and services at affordable prices.

    It is imperative that decisive action be taken to address these issues and restore stability to the currency. The government must crack down on illegal forex trading activities and prosecute those involved in undermining the country’s financial system. Additionally, measures should be put in place to limit the importation of non-essential goods and prioritize locally produced goods to reduce reliance on foreign imports.

    While the current situation may seem daunting, it is not insurmountable. By implementing strict regulations on forex trading, curbing illegal activities, and promoting local production, Ghana can begin to reverse the trend of currency depreciation and pave the way for a more stable and prosperous economy.

    It is crucial that all stakeholders, including the government, Central Bank, and citizens, work together to address the root causes of the cedi’s depreciation and chart a path towards economic recovery. Only through concerted efforts and decisive action can Ghana overcome the current forex rate crisis and build a more resilient economy for the future.