The headlines were impossible to miss. Ghana’s cedi, long considered one of Africa’s more volatile currencies, suddenly claimed the spotlight as the world’s best-performing currency in April 2025. For many observers and residents alike, this came as nothing short of an economic plot twist. How did a currency that had struggled through recent years suddenly roar back with a stunning 16% surge against the U.S. dollar?

Behind the celebration and political victory laps lies a more nuanced story—one that affects everything from daily groceries to long-term investment strategies. The implications stretch from expat apartments in Accra to rural markets in the Northern Region, touching both foreign investors and local entrepreneurs in profoundly different ways.

When Strength Brings Challenges: The Expat Perspective

For many expatriates who have made Ghana their home in recent years, the currency shift has been anything but celebratory. Across Ghana’s major cities, those who earn in foreign currencies are experiencing an unexpected squeeze. What was once a comfortable arrangement has shifted dramatically—with salaries paid in dollars but expenses fixed in cedis, the math suddenly doesn’t work in their favor. What was once a comfortable living has transformed overnight—the same apartment, the same grocery list, the same services now command more dollars, euros, or pounds.

Financial advisors are taking notice. “Think ahead and avoid emotional purchases just because the exchange rate looks good today,” cautions one prominent financial consultant whose clientele spans expats and returning Ghanaians. “This is actually the time to be strategic.”

Many financial experts recommend expatriates consider locking in long-term contracts denominated in cedis, particularly for recurring expenses like housing or service retainers. If the trend continues, what seems expensive today might look like a bargain six months from now.

Perhaps counterintuitively, now might be the moment for dollar-earners to consider certain investments—particularly those with long-term benefits in Ghana. Solar systems that reduce dependency on the national grid, equipment for potential side businesses, or productivity-enhancing technology could all pay dividends regardless of exchange rate fluctuations.

As for property investment—often a consideration for long-term expats—the calculus becomes more complex. Real estate analysts suggest that if buying property in Ghana was already part of a five-year plan, moving that timeline forward might make sense. However, they caution against letting currency movements alone drive major life decisions. The fundamentals still matter most.

A Window of Opportunity for Citizens—With Caveats

For Ghanaians earning and spending in cedis, the currency’s strengthening brings different considerations altogether. In theory, a stronger cedi makes imports cheaper—from fuel to raw materials to finished consumer goods. This should, eventually, help ease the inflation that has squeezed household budgets in recent years.

The operative word, however, is “eventually.”

“We’re seeing what economists call price stickiness,” explains an economics professor from one of Ghana’s leading universities. “Even when underlying costs decrease, retail prices tend to adjust downward much more slowly than they rise.”

For many business owners who import electronic components, raw materials, or finished goods, the benefits are already materializing. Importers can order more inventory with the same capital now. If the cedi stays strong, many small businesses are considering expansion opportunities that weren’t feasible just months ago.

The government, too, stands to benefit. Infrastructure projects that rely on imported materials could stretch further, and servicing foreign-denominated debt becomes less burdensome. Small and medium enterprise support programs might reach more businesses with the same budget allocations.

Yet all of these potential gains hinge on how responsibly both public and private sectors use this unexpected window of opportunity.

Behind the Surge: Following the Economic Playbook

What makes the cedi’s recent performance particularly noteworthy is that few saw it coming—not even the International Monetary Fund.

In late 2024, the IMF had forecasted only a modest recovery for Ghana’s currency, while emphasizing the need for continued fiscal discipline: tighter government spending, improved revenue collection, and careful management of interest rates.

To many observers’ surprise, Ghana appears to have largely followed this economic playbook. Inflation has steadily declined from its previous highs. Foreign reserves have strengthened considerably. Even credit ratings have improved, with Standard & Poor’s upgrading Ghana’s outlook just this month.

The country’s debt restructuring efforts—including the politically painful domestic debt exchange program and complex negotiations with international creditors—are showing tangible progress. These developments have restored a measure of investor confidence that had been notably absent in previous years.

“What we’re seeing is the market rewarding policy consistency,” notes a prominent financial journalist. “The question now is whether this discipline can be maintained.”

The Sustainability Question

That’s indeed the billion-cedi question on everyone’s mind. While the economic foundations appear stronger than they’ve been in years, the speed and scale of the cedi’s rise have raised legitimate questions about sustainability.

Can Ghana maintain fiscal discipline as political pressures mount? Will external factors beyond Ghana’s control—global commodity prices, investor sentiment toward emerging markets, or international interest rates—derail this positive momentum?

Perhaps most concerning to some economists is the risk of overconfidence. “Success can sometimes breed complacency,” warns a senior financial analyst at one of Ghana’s major banks. “If government or citizens begin making financial decisions based on an assumption that the cedi will only strengthen further, we could see the creation of new vulnerabilities.”

For expatriates, the advice remains straightforward: budget carefully, consider renegotiating contracts in cedis where possible, and think long-term rather than making major financial decisions based solely on current exchange rates.

For Ghanaian citizens, this represents a rare moment of economic breathing room—but one that requires continued vigilance and civic engagement to ensure the gains are consolidated rather than squandered.

A Story Still Unfolding

Ghana’s cedi comeback story is remarkable by any measure. Whether it becomes a turning point in the country’s economic trajectory or merely a temporary respite depends on what happens next—at the policy level, in the markets, and in the day-to-day decisions of ordinary Ghanaians and foreign residents alike.

For now, one thing is undeniable: Ghana is back on the global economic radar. And the world is watching with renewed interest to see if this West African nation can transform a currency surprise into sustainable economic progress.

As one local business owner puts it while calculating their next inventory order: “For the first time in years, many of us are planning our businesses with optimism rather than just hoping to survive. That change alone is worth celebrating.”