In 2025, Africa’s foreign exchange market was shaped by selective recoveries rather than broad-based strength, with Ghana’s cedi emerging as the continent’s top performer against the US dollar.
Other News
- From the Boardroom to the Kitchen; Cooking with Gamechangers is Bringing Ghana’s Finest to the Fire
- Hallmark HMO to Convene Healthcare Leaders on Sustainable Healthcare Solutions at the 5th Stakeholders Engagement Forum
- Norwegian Deputy Minister Leads Innovation-Focused Visit to Lagos, Signalling Growing Confidence in Nigeria’s Entrepreneurial Ecosystem
The Ghana cedi’s dramatic rebound led the way, followed closely by Zambia’s kwacha and the Congolese franc.
Across the continent, FX movements reflected a mix of policy interventions, export-driven inflows, and peg-driven stability, showing that strong gains were achievable even in a volatile environment.
Most other currencies experienced moderate appreciation or stabilization, highlighting the uneven nature of the market.
Commodity-rich economies and disciplined macroeconomic policies were central to the strongest trends, while global dollar dynamics continued to influence outcomes.
The Nigerian naira delivered a modest 6.91% appreciation in 2025, ranking 22nd among African currencies and underscoring its relatively subdued FX recovery.
Below are the top 10 best performed African currencies in 2025
São Tomé and Príncipe Dobra (STN): -10.95% (Euro-linked)
The dobra’s appreciation in 2025 was anchored to its euro peg, resulting in low volatility and predictable FX movements. While supportive of price stability, the gains did not reflect domestic FX market depth.
The strongest appreciation occurred in March (-4.07%) and June (-3.73), while the weakest performance was seen in July (3.26%) and October (1.75%).
The dobra experienced low volatility and predictable FX movements, with currency strength reflecting external monetary conditions rather than domestic FX market depth or reform momentum.
Comorian Franc (KMF): -11.55% (Euro-linked)
The Comorian franc appreciated modestly in 2025, reflecting the euro’s gains against the dollar through its peg. Currency stability helped contain imported inflation but remained structurally driven rather than reform-led.
The Comorian franc, pegged to the euro, followed a trajectory similar to the Central African CFA franc in 2025. The strongest appreciation was recorded in April (-4.88%) and March (-3.78%), reflecting periods of euro strength against the US dollar.
The weakest months were July (2.98%) and October (1.61%), when mild depreciation pressures emerged.
Eswatini Lilangeni (SZL): -11.90% (Rand-linked)
The lilangeni followed the rand’s trajectory throughout 2025, benefiting from spillover appreciation but remaining exposed to South Africa’s macro and capital flow cycles.
The lilangeni followed the same monthly pattern as other rand-linked currencies in 2025. The strongest appreciation occurred in May (-3.27%) and December (-3.19%), reflecting favourable external conditions and commodity-linked support for the rand.
The weakest months were July (2.63%) and April (1.58%), when depreciation pressures intensified.
Namibian Dollar (NAD): -12.09% (Rand-linked)
The Namibian dollar mirrored the rand’s appreciation in 2025 under the Common Monetary Area arrangement. FX stability supported trade predictability, though the peg limited autonomous policy flexibility.
The Namibian dollar tracked the rand closely throughout 2025 under the Common Monetary Area arrangement. Its strongest appreciation was recorded in December (-3.25%) and May (-3.24%), mirroring periods of rand strength.
Depreciation pressures were most evident in July (2.85%) and April (1.49%), underscoring Namibia’s direct exposure to South Africa’s capital flow cycles and risk sentiment. While the peg ensured FX predictability, it also meant that volatility was imported wholesale from the rand market.
Lesotho Loti (LSL): -12.10% (Rand-linked)
The Lesotho loti tracked the South African rand closely in 2025, appreciating broadly in line with ZAR due to its one-to-one peg. Currency movements were externally determined, offering stability without independent FX signalling.
The strongest appreciation occurred in May (-3.30%) and December (-3.23%), periods when improved global risk sentiment supported the rand and, by extension, the loti.
In contrast, the weakest performance was recorded in July (2.88%) and April (1.62%), reflecting heightened volatility and depreciation pressures transmitted directly from South Africa.
South African Rand (ZAR): -12.11%
The rand appreciated by 12.1% in 2025, driven by improved global risk sentiment, firm commodity prices, and episodic capital inflows. However, performance was highly volatile, with frequent reversals tied to global market dynamics rather than domestic FX policy.
The rand’s 2025 performance reflected its role as Africa’s most risk-sensitive currency. The strongest appreciation was recorded in May (-3.27%) and December (-3.19%), periods aligned with improved global risk sentiment and commodity price support.
Conversely, the rand depreciated most sharply in July (2.62%) and April (1.65%), underscoring its exposure to capital flow reversals and shifts in investor positioning.
Central African CFA Franc (XAF): -12.81%
Used by: Cameroon, Central African Republic, Chad, Republic of the Congo, Equatorial Guinea, Gabon
The Central African CFA franc appreciated by 12.8% in 2025, largely reflecting the euro’s strength against the US dollar, given the currency’s fixed peg.
Across all six countries, the CFA franc followed an identical monthly trajectory shaped by its euro peg. The strongest appreciation was recorded in April (-4.81%) and March (-4.20%), coinciding with periods of euro strength against the US dollar.
The weakest months were October (2.19%) and May (1.80%), when the currency depreciated modestly as the euro softened.
While the stronger currency helped moderate imported inflation, gains were externally driven, offering stability rather than signaling domestic macroeconomic improvement.
Congolese Franc (CDF): -20.09%
The Congolese franc posted a 20.1% appreciation in 2025, supported by strong mineral export inflows, particularly copper and cobalt.
The Congolese franc displayed relative calm early in the year before experiencing a decisive late-year adjustment. Its strongest appreciation occurred in October (-16.32%) and September (-5.47%), pointing to a significant FX correction likely linked to fiscal and liquidity realignments.
In contrast, the weakest months were March (1.47%) and February (0.26%), periods characterised by mild depreciation pressures despite steady mineral inflows.
Overall, the CDF’s annual gain was driven by commodity-linked FX inflows, though underlying fiscal and liquidity risks remain elevated.
Zambian Kwacha (ZMW): -20.48%
The Zambian kwacha ranked among Africa’s strongest currencies in 2025, appreciating by 20.5% against the US dollar. Despite a volatile mid-year marked by FX pressures, the currency benefited from IMF-backed reforms, improved debt restructuring outcomes, and tighter monetary conditions.
The currency recorded its strongest monthly gains in June (-9.50%) and October (-7.29%), reflecting moments of improved FX liquidity and reform-driven confidence.
However, the kwacha weakened most sharply in November (3.80%) and August (3.52%), highlighting persistent vulnerability to FX shortages and external balance constraints.
The kwacha’s performance reflected recovery momentum rather than sustained FX depth.
Ghanaian Cedi (GHS): -28.57%
The Ghanaian cedi was Africa’s best-performing currency in 2025, appreciating by 28.6% against the US dollar to close the year at GHS10.50/$, up from GHS14.70/$ in December 2024.
The currency recorded its strongest appreciation in May (-27.30%), followed by October (-12.80%), reflecting periods of heavy FX inflows, improved confidence around policy execution, and supportive commodity dynamics.
By contrast, the cedi’s weakest months were August (11.43%) and September (6.84%), when depreciation pressures resurfaced amid seasonal FX demand and market corrections. The cedi’s rebound was driven by tight monetary policy, sustained FX interventions, and a $3 billion IMF programme that restored investor confidence. Strong gold export receipts and easing inflation further supported FX stability.
Overall, 2025 marked a rare turnaround year for the cedi, positioning it as one of the fastest-appreciating currencies globally.
