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 Zambian kwacha (ZMW) strengthened by 7.3% against the US dollar in October, appreciating from roughly 23.87 ZMW/$ to 22.13 ZMW/$ at the end of the month. This recovery marks a significant improvement largely driven by progress in Zambia’s debt restructuring and improved investor confidence.
In 2025, Zambia’s macroeconomic landscape has been shaped by a combination of external debt negotiations, copper export performance, and monetary policy tightening. The successful restructuring of part of its external debt under the G20 Common Framework helped ease fiscal stress and boost foreign exchange inflows.
The kwacha’s appreciation reflects growing investor optimism, sustained copper export performance, and prudent monetary management. However, the currency remains sensitive to fluctuations in global commodity prices and the pace of fiscal reforms.
