As the second half of 2025 kicks into gear, several African nations are seeing renewed strength in their local currencies, with a few edging higher in value compared to last month’s rankings.
For countries grappling with years of inflation, mounting debt, and currency depreciation, even modest gains in exchange rates could signal a rare window of economic relief.
Though not all African currencies are on an upward trajectory, those showing signs of appreciation stand to benefit in multiple ways.
One of the most immediate effects of a stronger currency is the easing of inflationary pressure.
In a continent where many nations depend heavily on imports, ranging from fuel and food to industrial components, a stronger currency makes foreign goods cheaper, helping reduce the cost of living for households and businesses alike.
This is especially vital in Africa, where a significant percentage of consumer and industrial goods are sourced from outside the continent.
Appreciating currencies also give central banks more room to cut interest rates without stoking inflation, creating space for more flexible and growth-oriented monetary policies.
When backed by genuine economic fundamentals, rather than artificial interventions, stronger currencies can also boost industrial productivity.
Cheaper imports of raw materials and equipment can help local manufacturers scale production and become more competitive, particularly in sectors like agro-processing and light manufacturing.
In addition, for countries with a large portion of their public debt denominated in foreign currencies like the US dollar or euro, currency appreciation reduces the local cost of debt repayments.
This frees up more budgetary space for governments to reinvest in healthcare, education, and infrastructure.
As of June 23, according to the Forbes currency converter and as reported by Business Insider Africa, Tunisia, Morocco, and Ghana recorded slight increases in the value of their currencies compared to the previous month.
Meanwhile, Libya, Botswana, Swaziland, South Africa, and Namibia saw their currency values dip slightly.
Eritrea’s currency held steady. Here is the updated ranking of the strongest African currencies per US dollar for June 2025:
— Tunisia – 2.96 Tunisian Dinar
— Libya – 5.44 Libyan Dinar
— Morocco – 9.15 Moroccan Dirham
— Ghana – 10.33 Ghanaian Cedi
— Botswana – 13.51 Botswanan Pula
— Seychelles – 14.44 Seychellois Rupee
— Eritrea – 15.00 Eritrean Nakfa
— Swaziland – 18.10 Swazi Lilangeni
— South Africa – 18.10 South African Rand
— Namibia – 18.10 Namibian Dollar
These figures reflect the relative strength of each currency against the US dollar and offer insight into the broader economic momentum across the continent.
As Africa continues to navigate global economic shifts, the resilience of these currencies will be a key indicator of underlying financial stability and policy effectiveness.
