As the first quarter of 2025 concludes, the Ghanaian Cedi has been ranked the 7th strongest currency in Africa, according to the Forbes currency calculator. The Cedi’s exchange rate stands at GH¢15.48 to one US dollar, a position that reflects both resilience and ongoing economic challenges.
Despite maintaining a spot among Africa’s top 10 strongest currencies, the Cedi experienced a 5.3% depreciation on the interbank market during Q1 2025. Additionally, it weakened by nearly 3.0% against the US dollar in the retail market, highlighting persistent pressure from external economic forces and domestic fiscal policies.
Africa’s Strongest Currencies in Q1 2025
At the top of the rankings, Tunisia’s Dinar leads as the strongest currency in Africa, valued at 3.09 to one US dollar. It is closely followed by the Libyan Dinar, Moroccan Dirham, Botswana Pula, Seychelles Rupee, and Eritrean Nakfa, occupying the 2nd to 6th positions. Meanwhile, the Lesotho Loti, Namibian Dollar, and South African Rand complete the top 10, ranking 8th, 9th, and 10th, respectively.
Notably, the top five African currencies experienced slight gains in value compared to the previous month, indicating relative stability in their economies.
The Role of Currency Strength in Economic Growth
According to Forbes, a strong and stable currency is a vital economic asset, particularly for African nations striving for long-term growth and global competitiveness. A resilient currency shields economies from external shocks, protects consumer purchasing power, and fosters investor confidence.
Some countries, like Kenya, have managed to stabilize their currencies through consistent foreign inflows from NGOs and remittances, demonstrating the role of external capital in maintaining exchange rate stability.
As Ghana navigates 2025, the performance of the Cedi will remain a critical indicator of the country’s economic trajectory, with policymakers and financial analysts closely monitoring its movement in global markets.
Story by: Mercy Addai Turkson #ahotoronline.com
