The Ghanaian cedi is staging one of the world’s most remarkable currency recoveries in 2025, appreciating by more than 42% year-to-date as of June, according to Bank of Ghana Governor Johnson Asiama. This sharp turnaround nearly erases the steep declines experienced in 2022 and 2023.

Speaking at the Graphic Business/Stanbic Bank Breakfast Meeting in Accra on July 15, Asiama credited the cedi’s strength to sustained policy discipline, robust foreign reserve accumulation, and renewed investor confidence. “The recovery reflects a clear shift in Ghana’s economic trajectory,” he said, emphasizing that improved fiscal and monetary management have fortified the currency and enhanced the balance of payments.

Asiama disclosed that Ghana’s gross international reserves rose to $11.1 billion by mid-year, up from $8.98 billion at the end of 2024. This buffer now covers 4.8 months of imports.

Driving this resurgence is Ghana’s trade surplus, which expanded to $4.14 billion in the first four months of 2025 from just $759 million during the same period in 2024. Gold exports soared by 76%, supported by higher production and sustained price gains, while cocoa and oil shipments also contributed to the improved external position.

The current account surplus similarly surged, reaching $2.12 billion in the first quarter — a sharp rise from a mere $66 million a year earlier. Remittance flows have remained steady, further supporting foreign exchange inflows.

Amid these gains, Ghana’s ongoing IMF-supported reform program has garnered multiple favorable reviews and culminated in a credit rating upgrade by S&P, moving the country out of Selective Default to CCC+. Asiama described these developments as more than numerical improvements; they represent a restoration of macroeconomic credibility that resonates with markets, investors, and citizens alike.

Despite the progress, Asiama warned that Ghana remains exposed to commodity price swings. To mitigate this, the Bank of Ghana is developing a program to hedge gold export revenues. This initiative aims to enclose the price of gold exports, protecting foreign exchange earnings and the cedi from future volatility.

“While beneficial for now, a future correction in prices could quickly narrow our trade surplus,” Asiama said, underscoring the need for such risk management tools amid fluctuating global market.