In October 2025, several African currencies demonstrated resilience against the US dollar, defying the broader trend of depreciation seen across much of the continent. The month highlighted a mix of steady and strengthening performances, led by stable regimes such as Eritrea’s and recovering units like Liberia’s and Uganda’s.
Data compiled from Investing.com and Trading Economics by the Nairametrics Research team indicates that disciplined monetary policy, limited external exposure, and healthy foreign exchange reserves were key drivers of currency stability amid global economic uncertainty.
Best Performing African Currencies Against the US Dollar
1. Eritrean Nakfa (ERN) – Stable at 15.00 ERN/$
The Eritrean Nakfa maintained its pegged exchange rate in October, reflecting the central bank’s policy-driven stability rather than market-based strength. Oversight by the Bank of Eritrea ensures minimal fluctuation, although foreign currency shortages and limited private sector access remain challenges.
2. Congolese Franc (CDF) – 2,296.00 CDF/$ (+16.32%)
The Congolese Franc recorded the largest monthly gain, appreciating 16.3% against the US dollar. This movement was fueled by stronger foreign inflows from the mining sector and tighter monetary policy. Despite persistent structural challenges, demand for minerals like cobalt and copper provided significant support for the currency.
3. Ghanaian Cedi (GHS) – 10.90 GHS/$ (+12.8%)
The Cedi strengthened by 12.8%, marking one of its strongest monthly performances in 2025. Improved foreign exchange liquidity, fiscal discipline under the IMF Extended Credit Facility, and higher inflows from cocoa, gold exports, and remittances contributed to the cedi’s recovery.
Zambian Kwacha (ZMW) – 22.13 ZMW/$ (+7.3%)
The Zambian Kwacha appreciated by 7.3% in October, boosted by progress in debt restructuring and rising investor confidence. Copper exports, prudent monetary management, and successful negotiations under the G20 Common Framework provided strong support, although sensitivity to global commodity prices remains.
5. Nigerian Naira (NGN) – 1,427.50 NGN/$ (+3.42%)
The Naira posted a modest gain of 3.4% against the US dollar, benefiting from Central Bank of Nigeria (CBN) interventions, tighter monetary policy, and improved foreign exchange liquidity. Rising oil prices and higher remittance inflows further strengthened the currency, though challenges in non-oil exports and fiscal imbalances persist.
6. Egyptian Pound (EGP) – 47.24 EGP/$ (+1.27%)
The Egyptian Pound appreciated slightly, reflecting cautious stability in the foreign exchange market. Policy support under the IMF Extended Fund Facility (EFF), growing tourism revenues, and foreign direct investment inflows contributed to the currency’s marginal gain.
Key Takeaways
African currencies that performed best in October 2025 were generally backed by disciplined monetary policy, limited external exposure, and strong foreign reserves.
Commodity exporters and economies with proactive fiscal and monetary management fared better, even amid global economic volatility.
While some currencies posted only marginal gains, their stability in a depreciating environment highlights resilience and investor confidence.
0 Comments