The global economy is constantly evolving, and African currencies are no exception. In 2025, several African currencies stand out for their strength against the US dollar, reflecting the economic stability and performance of the countries concerned.

Capmad presents an overview of the 10 strongest African currencies, comparing them to the US dollar, while analyzing the factors that influence their value.

Factors Influencing the Strength of African Currencies

Several factors influence the strength of African currencies against the US dollar.

• Natural Resources: Countries rich in natural resources, such as Botswana and Namibia, often benefit from stronger currencies due to commodity exports.
• Political Stability: Political and economic stability are crucial to maintaining investor confidence and currency value. Countries with stable governments, such as Seychelles and Ghana, tend to have stronger currencies.
• Monetary Policy: Central bank decisions regarding interest rates and inflation play a key role in currency strength. For example, the CFA franc benefits from a stable monetary policy thanks to its peg to the euro.
• Foreign Investment: A country’s attractiveness to foreign investment can also influence the strength of its currency. Countries that attract investment in key sectors, such as Kenya and South Africa, often see their currencies strengthen.

TOP 10 Strongest Currencies in Africa in February 2025

Tunisian Dinar (TND)

Compared to the US Dollar, the Tunisian Dinar ranks first among the strongest currencies on the continent. The reason why its value is quite high is because of a strict monetary policy and a system of exchange controls that restrict the convertibility of the currency on the world market.

Libyan Dinar (LYD)

The Libyan Dinar, which benefits from the country’s considerable oil reserves, is positioned just behind the Tunisian Dinar. Despite the political instability in Libya, the currency maintains a strong value thanks to the revenues generated by hydrocarbons.

Moroccan Dirham (MAD)

The Moroccan Dirham is considered one of the strongest currencies in Africa. The Central Bank of Morocco, through strict management and the diversified economy, supported by the export of phosphates, the tourism sector and the Moroccan automobile industry, helps to stabilize its exchange rate.

Botswana Pula (BWP)

The Botswana Pula is one of the most stable African currencies. By effectively managing its economy, particularly in the areas of tourism and diamonds, the country manages to maintain a strong currency in the face of global fluctuations.

Seychelles Rupee (SCR)

The significant value of the Seychelles Rupee is due to the thriving tourism industry in Seychelles, which brings in considerable foreign exchange revenues.

Eritrean Nakfa (ERN)

The Eritrean Nakfa, although not very convertible on international markets, is maintained at a rate set by the Eritrean government.

Ghanaian Cedi (GHS)

The Ghanaian Cedi is among the best performing currencies in West Africa. Its persistence at a high level depends on an economy driven by the export of gold, cocoa and oil.

Lesotho Loti (LSL)

The Lesotho Loti is pegged to the South African Rand, which allows it to benefit from the relative stability of its larger neighbor’s currency.

Namibian Dollar (NAD)

The Namibian Dollar is also pegged to the South African Rand, which strengthens its position among the continent’s strong currencies.

Swazi Lilangeni (SZL)

Finally, the Swazi Lilangeni closes the ranking. Like the Loti and the Namibian Dollar, it is pegged to the South African Rand, ensuring a certain monetary stability.

Economic Challenges of African Currencies

Africa’s strongest currencies face several economic challenges.

• Inflationary pressures: Persistent inflationary pressures in many African countries could put further pressure on African economies, including by further reducing real wages and maintaining high interest rates.
• Global uncertainty: Prolonged global trade and investment blockages have disrupted Africa’s growth. A further escalation could jeopardize the continent’s economic recovery.
• Currency depreciation: Under pressure from persistently high global interest rates and continued global uncertainty, most African currencies have depreciated further against the US dollar in 2023. A sharp loss in currency value could fuel inflation or undermine investor confidence, forcing central bank action.
• External shocks: Sub-Saharan African countries face significant monetary policy challenges. Several countries in the region have also experienced rising inflation, and in some cases this challenge has been exacerbated by the dominance of fiscal policy due to high public debt.
• Global financial conditions: As elsewhere in the world in 2023, African financial markets have felt the effects of tightening global financial conditions. These include slower growth, higher inflation, depreciating exchange rates, and declining foreign exchange reserves.
• Risk of debt distress: Rising inflation and tighter monetary policies have put additional pressure on exchange rates and international capital flows. In this context, some regions of Africa are likely to face significant financing challenges.

Conclusion

In 2025, African currencies continue to play a crucial role in the global economy. While some currencies are stronger than others against the US dollar, each currency has its own unique characteristics and challenges.

Economic development, political stability, and natural resources are all factors that influence the strength of African currencies. As the continent continues to grow and develop, it will be interesting to track how these currencies evolve and how they impact the global economy.