The Ghanaian cedi’s impressive run as the world’s top-performing currency has been curtailed by a sharp rise in demand for U.S. dollars, as businesses rush to settle import bills ahead of the festive season.
Bloomberg data reveals that the cedi, the official currency of Africa’s leading gold exporter, has depreciated by 13% this quarter, marking the steepest drop among global currencies. This downturn has partially reversed the cedi’s earlier 50% surge, which was buoyed by rising gold prices and earned it the title of best-performing currency during the second quarter of the year.
Analysts attribute the recent slide to the Bank of Ghana’s limited supply of foreign currency. Hamza Adam, head of market-risk management at UMB Bank Ltd., noted that banks received only half of their requested dollar allocations last week. “This week, the central bank is working to fulfill all outstanding demand,” he said from Accra.
As of 1:50 a.m. local time, the cedi was trading 0.1% lower at 11.9507 per dollar, though it remains 23% stronger year-to-date.
Ghana’s economy, heavily reliant on imports ranging from food to industrial equipment, typically sees a spike in foreign purchases as companies prepare for the Christmas season. This seasonal trend has further strained dollar availability.
Despite Ghana’s gross international reserves reaching $11.1 billion—a three-year peak by the end of June—the central bank has opted not to release enough funds to fully satisfy market demand.
In a written statement, the Bank of Ghana emphasized its commitment to maintaining currency stability:
“The cedi should be stable within a reasonable range. Our role is to ensure fluctuations are orderly, grounded in economic fundamentals, and do not erode confidence in the broader economy.”
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