The Ghana cedi turns 60, a milestone that tells not just the story of a currency, but of a nation’s economic journey: its highs, lows, resets, and resurrections.
Born in 1965 as a symbol of post-independence pride and economic sovereignty, the cedi has survived military coups, structural adjustments, hyperinflation, and global shocks, and today, it stands at an exchange rate of around GHS 10.8 to the US dollar, its strongest level in more than a year.
From its lowest depths in late 2024, when the cedi hit a record GHS 15.99 to the dollar, the currency has appreciated by roughly 33 percent, a remarkable turnaround that few predicted.
The Cedi’s Long Journey: From Strength to Struggle
When the cedi replaced the Ghana pound in July 1965, it traded close to ¢2.4 to £1, making it one of the strongest currencies in Africa. But the honeymoon was short-lived. Economic shocks in the 1970s and 1980s, coupled with inflation and fiscal imbalances, sent the cedi tumbling.
By the mid-1980s, under the Structural Adjustment Programme, the Bank of Ghana was forced into repeated devaluations. By the late 1990s, the old cedi had lost almost all its purchasing power, with one U.S. dollar exchanging for nearly ¢10,000.
That crisis led to the 2007 redenomination, which knocked four zeros off the old notes and introduced the new Ghana cedi (GHS). At its launch, GHS 1 was roughly equal to USD 1, a psychological reboot meant to restore confidence and simplicity to the economy.
The Modern Era: Peaks, Tumbles, and Recoveries
The new cedi began strong, trading between GHS 0.9 and 1.5 per USD between 2007 and 2011. But subsequent years brought familiar volatility. By 2016, it had slipped to about GHS 4.3 per USD, a 76 percent depreciation in under a decade.
By 2022, Ghana’s debt distress and inflationary pressures triggered another collapse, pushing the rate past GHS 14 per USD. In October 2024, it hit an all-time low of GHS 15.99.
Then came a surprise. Through tight monetary policy, IMF inflows, and Bank of Ghana interventions, the cedi staged one of its fastest recoveries in modern times, firming to around GHS 10.8 per USD by October 2025, an appreciation of more than 30 percent in under six months.
The Impact of a Stronger Cedi
The cedi’s recovery has offered a rare reprieve. Imported inflation has eased, lowering the cost of fuel, cement, and food. Investor confidence has ticked up, with local bonds attracting foreign inflows again. Businesses that rely on imported inputs are breathing easier, even if exporters feel the pinch.
Yet the story is not purely celebratory. The cedi’s history warns that strength can be temporary, especially in an economy still tied to commodity exports and foreign borrowing.
A Currency That Mirrors the Nation
At 60, the cedi is not just a medium of exchange; it is a mirror reflecting Ghana’s economic resilience and fragility alike. Its rise and fall often follow familiar patterns: election-year spending, trade deficits, and global commodity cycles. Each bout of instability tells of a country balancing ambition with fiscal reality.
In 2025, the currency’s renewed strength signals recovery, but also raises an uneasy question: will the cedi stay healthy after the celebration ends? Can this moment of stability endure beyond the festivities, or will history repeat itself once more?
Ghanaians have seen this before, periods of firm footing followed by sudden slippage. From the strong post-redenomination years to the breathtaking free fall of 2022 and 2024, the cedi’s past reminds everyone that what climbs can quickly collapse. The current rally is real, but so was the panic when the currency lost over half its value just a year ago.
Will the cedi continue to defy gravity, or is this only a pause before another tumble? Will prudent fiscal management keep it aloft, or will familiar pressures, spending, imports, and debt, pull it back into free fall?
For now, the cedi looks healthy. But as every economist knows, in Ghana’s financial story, stability has always been the exception, not the rule.
