Ghanaian Cedi Tops List Of 15 Worst-Performing Currencies Against US Dollar In 2025, As Naira Narrowly Escape.
The Ghanaian Cedi has emerged as the hardest-hit currency in a recent ranking of the 15 worst performers against the US Dollar, suffering a staggering year-on-year (YoY) loss of 31.09% as of 6 June 2025, according to data from Statisense. In stark contrast, the Nigerian Naira has narrowly escaped the list, signalling a glimmer of resilience amidst global economic turbulence.
Ghanaian Cedi’s Steep Decline
Topping the list of struggling currencies, the Ghanaian Cedi’s 31.09% plunge reflects severe economic pressures gripping the West African nation. Analysts attribute this dramatic decline to a toxic mix of high public debt, persistent inflation, and heavy reliance on imported goods. The Bank of Ghana has attempted to stabilise the currency through foreign exchange interventions and tighter monetary policies, but these measures have yet to stem the tide. The Cedi’s woes outstrip those of other listed currencies, including the Thai Baht (-11.49%), the Russian Ruble (-11.20%), and the Malaysian Ringgit (-9.86%). The Swedish Krona (-8.90%), Icelandic Króna (-8.88%), and Swiss Franc (-8.38%) also feature, alongside the Japanese Yen (-8.08%) and currencies from Tajikistan, Taiwan, Morocco, Albania, Israel, Lesotho, and Namibia, with losses ranging from 6.09% to 7.85%.
“The Ghanaian Cedi’s collapse is a wake-up call,” said Dr. Ama Boateng, an economist at the University of Accra. “Structural weaknesses, coupled with external shocks like rising global commodity prices, have left the currency vulnerable. Urgent reforms are needed to boost exports and reduce import dependency.”
Nigerian Naira’s Relative Stability
In a striking contrast, the Nigerian Naira has avoided the ignominy of the top 15, hinting at a tentative recovery. The Central Bank of Nigeria (CBN) has worked to manage foreign exchange demand, bolstered by economic reforms launched by President Bola Tinubu in June 2023. These measures, including the removal of foreign currency controls and fuel subsidies, initially sparked a sharp devaluation, with inflation soaring to 35% by late 2024. Yet, recent data points to stabilisation. Trading Economics reports the USD/NGN exchange rate at 1,558.17 on 9 June 2025, down a modest 0.06% daily but up 2.78% over the past month, despite a 3.75% YoY decline. On the parallel market, the Naira traded at ₦1,600.00 to the US Dollar on 8 June 2025, per NgnRates.com, underscoring a persistent gap between official and unofficial rates.
Expert Perspectives
The divergent paths of the Cedi and Naira have sparked debate. “Ghana’s challenges are compounded by debt distress and limited forex reserves,” noted Michael Klein, Senior Research Fellow at Chatham House’s Global Economy and Finance Programme. “Nigeria, however, has benefited from higher oil revenues in local currency terms post-devaluation, offering a buffer. Still, both nations must tackle inflation and structural issues to sustain any gains.” Klein cautioned that artificially propping up the Naira could backfire, adding, “A competitive currency is vital for Nigeria’s long-term economic diversity.”
Looking Forward
The outlook for the Ghanaian Cedi remains grim, with few forecasts offering hope of a swift rebound. Analysts suggest aggressive debt restructuring and investment in local production could ease pressure, but progress is slow. Meanwhile, the Nigerian Naira’s future appears cautiously optimistic. Long Forecast projects the USD/NGN rate to close June 2025 at 1,562, a slight 0.8% dip, while CoinCodex predicts fluctuations between ₦1,630.70 and ₦2,042.07 over 2025, averaging ₦1,864.07.
As Ghana grapples with the Cedi’s collapse, Nigeria’s absence from the 15 worst-performing currencies offers a ray of hope. However, both nations face daunting tasks to bolster productivity, attract foreign investment, and shield their economies from global volatility.
