Gold price surge boosts Ghana and Zimbabwe currencies
The recent surge in gold prices has significantly strengthened the currencies of Ghana and Zimbabwe. According to Bloomberg, Ghana’s cedi achieved its first annual gain since 1994, while Zimbabwe’s gold-backed currency, the Zimbabwe Gold (ZiG), reached its strongest level since 8 January. Both countries have benefited from increased gold reserves and strategic policy moves. The rally in gold has provided much-needed stability amid ongoing economic and geopolitical uncertainties.
TLDR
- Ghana’s cedi posted a 41 per cent gain against the US dollar, making it the best performer among 144 currencies tracked by Bloomberg after the Russian rouble.
- Ghana’s central bank increased bullion purchases, raising gross international reserves by 24 per cent to $11.4bn as of October from the start of the year.
- In May, Ghana established GoldBod to buy gold from small-scale miners, helping curb smuggling and formalise the sector.
- The Zimbabwe Gold (ZiG) traded at 25.98 per dollar on Tuesday, its strongest level since 8 January, and has depreciated only 0.7 per cent against the dollar in 2025.
- The African Export–Import Bank and the Central Bank of Egypt signed a Memorandum of Understanding for the African Gold Bank in Egypt to formalise gold value chains and strengthen reserves.
