Currency Update: May 2025

In May 2025, global exchange rates reflected the influence of political developments and deflationary pressures. In Ghana, the launch of a new government agency has led to a rise in gold exports. Meanwhile, the Taiwanese dollar gained strength amid ongoing uncertainty surrounding U.S. tariff policies. In Zambia, increased food supply has contributed to a deflationary trend, supporting the value of the local currency.

Global Currencies Gaining Value Against the U.S. Dollar:

GHS – Ghanaian Cedi 

The Ghanaian cedi appreciated significantly in May, largely due to the success of the newly established Ghana Gold Board (also known as GoldBod). Operational since March 2025, this government agency was created to formalize and regulate the country’s gold trading sector. GoldBod is the sole entity authorized to purchase, sell, and export gold in Ghana—a move designed to enhance transparency and attract foreign investment. Since its inception, Ghana has experienced a notable increase in gold exports and foreign exchange liquidity, both of which have strengthened the cedi.

TWD – Taiwanese Dollar

The Taiwanese dollar (TWD) strengthened amid ongoing discussions with the United States regarding tariffs. Market speculation has led many investors and the public to exchange U.S. dollars for the local currency, bolstering the TWD. In response to the currency’s appreciation, Taiwan’s Central Bank has issued cautionary guidance, urging individuals to base foreign currency transactions on real economic needs rather than speculative trends.

ZMW – Zambian Kwacha

In Zambia, the kwacha (ZMW) benefited from deflationary effects driven by a strong agricultural season. Increased rainfall has improved the supply of staple foods such as corn, easing consumer prices. The resulting decline in food costs has supported the value of the kwacha. Additionally, recent interest rate cuts by the U.S. Federal Reserve have generally boosted emerging market currencies, including Zambia’s.

One benefit of the COLA is that it is paid separately from salary and can be updated for changes in economic conditions – both up and down. The COLA can be influenced by two factors:

• Exchange rates: as the exchange rate between the home and host locations changes, the COLA is updated to capture the impact of a strengthening or weakening home / host currency.
• Inflation / deflation: Additionally, both the market basket at home and at host are affected by inflation and deflation, so the COLA is updated for those as well.
  Updating the COLA for exchange rate and inflation allows the company to make sure the employee is protected against economic changes.

As a result of changing economic circumstances, the COLA can increase or decrease. Although COLA changes keep the employee balanced, the Global Mobility team may need to field any employee questions about COLA decreases. For more on Cost-of-living (COLA) and how exchange rates affect the allowance, check out our Education Knowledge Base.