In October 2025, a couple of African currencies demonstrated resilience against the US dollar, defying the broader trend of depreciation observed across much of the continent.
The month saw a mix of steady and strengthening performances across African currencies, led by stable regimes like Eritrea’s and recovering units such as Liberia’s and Uganda’s.
The data sourced from Investing.com and Trading Economics was compiled and analyzed by the Nairametrics Research team.
Despite global currency pressures, several African currencies, including the Liberian dollar, Ugandan shilling and Zambian Kwacha, posted slight appreciation in October 2025.
The best-performing African currencies in October 2025 were those backed by disciplined monetary policy, limited external exposure, and steady foreign exchange reserves, the key indicators of resilience in a period marked by global economic uncertainty.
Best performing African currency in October against the US dollars.
The Eritrean Nakfa (ERN) remained unchanged against the US dollar in October, maintaining a steady exchange rate of 15.00 ERN/$, the same level recorded by the end of September. This reflects that Eritrea’s exchange rate regime is well-managed. The value of the currency is officially pegged to the dollar with less fluctuation in the open market.
The Bank of Eritrea maintains firm oversight of the exchange market, prioritized stability over flexibility. Notwithstanding, this managed stability comes with constraints, including persistent foreign currency shortages, limited private sector access to hard currency, and a parallel market where rates are typically higher than the official peg.
The Nakfa’s unchanged exchange rate in October reflects Eritrea’s policy-driven currency stability rather than market-based strength.
