World Bank’s latest Africa Pulse Report has ranked the Ghana cedi as the best-performing currency since January until the eighth month of the year.

Per the report, the cedi's current status is a result of the gains in value since the beginning of the year, citing a twenty percent (20%)gain, making it the strongest performance among African currencies.

The World Bank says the current performance of the cedi can be attributed to the government's disciplined fiscal management, prudent monetary policy, rising export receipts, and renewed investor confidence following Ghana’s successful debt restructuring.

The cedi's appreciation, according to some analysts, has been remarkable given its heavy depreciation in the previous years. The pace of its recovery underscores the effectiveness of Ghana’s economic reforms and improved external conditions.

While the cedi leads, the Zambian kwacha followed as the second-best performer, appreciating by 16 percent, strengthened by ongoing debt resolution efforts, lower oil import costs, and an improved supply of U.S. dollars.

Currencies in Kenya, Tanzania, and Uganda also posted moderate gains, supported by stronger export growth and recovering capital inflows.

According to the World Bank, the current performance of African currencies is a result of the weakening of the dollar, an increase in global commodity prices, and improved financial conditions. These factors have helped reduce inflation and brought more stability to markets across Africa.

Despite the cedi's current ranking by the global financial institution, it suffered a steep depreciation pressure in recent weeks, as businesses increased imports ahead of the festive season and election-related spending expectations rose.

In response, the Bank of Ghana has announced plans to inject about $1.15 billion into the foreign exchange market to ease demand pressures and keep the cedi stable.

It also announced that, effective October, it will begin selling portions of its gold reserves in exchange for foreign currency to banks and other market participants under its Domestic Gold Purchase Programme. This move is aimed at pumping some forex into the Ghanaian markets to salvage the fast-depreciating cedi.

According to the BoG, only approved banks will be permitted to participate in the auctions, which are scheduled to take place every week.

Speaking at a meeting with heads of commercial banks in Accra, the Governor of the Bank of Ghana, Dr. Johnson Asiama, said the exercise will be fair and transparent to ensure equal access for all market participants.

“Beginning October 2025, the Bank of Ghana will commence foreign exchange (FX) intermediation under the Domestic Gold Purchase Programme, with plans to sell up to US$1.15 billion for the month. These sales will be conducted on a spot basis through twice-weekly, price-competitive auctions open to all licensed banks,” he said.

This comes after the central bank recorded the biggest sale of dollars since the start of 2025, with $243m FX forward auction, as reported by Joy Business.

Consequently, banks predicted a stronger cedi. The Central Bank, about three weeks ago, sold its largest amount of U.S. dollars so far this year, $243 million, to commercial banks through a (7) seven-day FX forward auction.

According to the data, BoG offered US$300 million; however, the commercial banks just accepted US$243 million, with a price range of GHC 12.15-12.40.

Market watchers, however, warn that sustaining the currency’s gains will depend on Ghana’s continued commitment to fiscal discipline, export diversification, and structural reforms aimed at consolidating macroeconomic stability.

Ghana’s total foreign exchange interventions since the height of its economic crisis in 2022 have exceeded $7.4 billion, according to International Monetary Fund (IMF) data analysed by JoyNews Research.

The data reveal that the Bank of Ghana (BoG) injected about $1.9 billion into the forex market in 2022, the year of the crisis. Interventions fell to $1.1 billion in 2023 but surged again to $3 billion in 2024.

In just the first quarter of 2025, the Central Bank added another $1.4 billion, signalling continued efforts to stabilise the local currency.

Earlier this month, the BoG announced plans to inject $1.15 billion through its Domestic Gold Purchase Programme (DGPP). The move, aimed at easing pressure on the cedi, will bring this year’s total forex support to over $2 billion. The Bank said the funds would be disbursed through twice-weekly, price-competitive spot auctions accessible to all licensed banks.

Following the announcement, the cedi appreciated by 2.5%, reflecting renewed investor confidence in the Central Bank’s strategy.

Analysts expect the local currency to maintain its strength against the US dollar through the final quarter of 2025, as offshore FX inflows and a liquid interbank market offset high dollar demand from the energy, services, and manufacturing sectors.

Dollar interventions have surged sharply in the past two fiscal years, accounting for more than 60% of total injections over the last four years. These interventions have supported one of the strongest performances of the Ghana cedi in recent memory.