Africa’s foreign exchange market in 2025 was shaped by selective recoveries rather than broad-based strength, with only a handful of currencies delivering outsized gains against the US dollar, according to an analysis by Nigerian outlet Nairametrics.

The standout performer was Ghana’s cedi, followed by the Zambian kwacha and the Congolese franc, underscoring the importance of policy discipline and commodity-linked inflows.

Across the continent, currency movements reflected a mix of monetary tightening, IMF-backed reforms, export-driven FX inflows and peg-driven stability. While several currencies stabilised or posted modest gains, the overall picture remained uneven, highlighting divergent macroeconomic conditions and reform momentum.

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1. Ghana – cedi (top performer)
2. Zambia – kwacha
3. Democratic Republic of Congo (DRC) – Congolese franc
4. South Africa – rand
5. Namibia – Namibian dollar
6. Eswatini – lilangeni
7. Lesotho – loti
8. Nigeria – naira
9. São Tomé and Príncipe – dobra

Ghana’s cedi emerged as Africa’s best-performing currency in 2025, appreciating 28.6% to close the year at GHS10.50/$, up from GHS14.70/$ in December 2024. The rebound marked one of the strongest global currency performances of the year.

The cedi’s strongest monthly appreciation was recorded in May (-27.30%), followed by October (-12.80%), periods that coincided with heavy FX inflows, improved confidence in policy execution and supportive commodity dynamics. By contrast, the weakest months were August (11.43%) and September (6.84%), when seasonal FX demand and market corrections triggered renewed depreciation pressures.

The turnaround was driven by tight monetary policy, sustained FX market interventions and a $3bn IMF programme, which helped restore investor confidence. Strong gold export receipts and easing inflation further supported FX stability, positioning the cedi as one of the fastest-appreciating currencies globally in 2025.

Zambia’s kwacha ranked among Africa’s strongest performers, appreciating 20.5% against the dollar. The currency benefited from IMF-backed reforms, progress on debt restructuring and tighter monetary conditions, although performance remained volatile.

The kwacha recorded its strongest monthly gains in June (-9.50%) and October (-7.29%), reflecting periods of improved FX liquidity and reform-driven confidence. However, it weakened most sharply in November (3.80%) and August (3.52%), highlighting persistent vulnerability to FX shortages and external balance constraints.

The Congolese franc (CDF) posted a 20.1% appreciation, supported by strong mineral export inflows, particularly copper and cobalt. The currency remained relatively stable early in the year before undergoing a sharp late-year adjustment.

The strongest appreciation occurred in October (-16.32%) and September (-5.47%), pointing to a decisive FX correction likely linked to fiscal and liquidity realignments. The weakest months were March (1.47%) and February (0.26%), when mild depreciation pressures emerged despite steady export inflows.

While commodity receipts underpinned the annual gain, underlying fiscal and liquidity risks remain elevated, leaving the CDF exposed to future volatility.

South Africa’s rand appreciated 12.1% in 2025, driven by improved global risk sentiment, firm commodity prices and episodic capital inflows. However, performance was highly volatile, reflecting the rand’s status as Africa’s most risk-sensitive currency.

The strongest appreciation was recorded in May (-3.27%) and December (-3.19%), aligned with periods of favourable global sentiment. The sharpest depreciation occurred in July (2.62%) and April (1.65%), underscoring exposure to capital flow reversals and shifting investor positioning.

Currencies pegged to the rand followed similar trajectories. Namibia’s dollar and Eswatini’s lilangeni tracked the rand closely under the Common Monetary Area, importing both stability and volatility from South Africa.

Namibia’s strongest appreciation occurred in December (-3.25%) and May (-3.24%), while the weakest months were July (2.85%) and April (1.49%). The peg supported trade predictability but limited independent policy flexibility.

The lilangeni recorded its strongest gains in May (-3.27%) and December (-3.19%), while depreciation pressures were most evident in July (2.63%) and April (1.58%), reflecting spillover effects from rand volatility.

Lesotho’s loti, also pegged one-to-one to the rand, mirrored the same pattern. The strongest appreciation occurred in May (-3.30%) and December (-3.23%), while the weakest performance was seen in July (2.88%) and April (1.62%), offering stability but no independent FX signalling.

Pegged currencies linked to the euro also delivered moderate gains. The Central African CFA franc, used by six countries, appreciated 12.8% in 2025, reflecting the euro’s strength against the dollar.

Across all six CFA zone members, the currency followed an identical monthly trajectory. The strongest appreciation was recorded in April (-4.81%) and March (-4.20%), while the weakest months were October (2.19%) and May (1.80%). Gains helped moderate imported inflation but were externally driven.

A similar pattern was observed in the Comorian franc, which also appreciated modestly through its euro peg. The strongest gains were in April (-4.88%) and March (-3.78%), while the weakest months were July (2.98%) and October (1.61%). Stability supported price control but reflected external monetary conditions rather than domestic reforms.

São Tomé and Príncipe’s dobra, pegged to the euro, also saw low volatility. The strongest appreciation occurred in March (-4.07%) and June (-3.73%), while the weakest performance was recorded in July (3.26%) and October (1.75%). Gains were structurally driven by the euro peg rather than market depth.

Nigeria’s naira delivered a modest 6.91% appreciation in 2025, ranking 22nd among African currencies. The subdued recovery reflected lingering FX liquidity constraints and structural imbalances despite policy adjustments.

Overall, Africa’s FX landscape in 2025 underscored a clear divide: commodity exporters and reform-driven economies outperformed, while pegged currencies delivered stability without signalling domestic improvement, according to Nairametrics.

The cedi’s dramatic turnaround stood out as the year’s defining story, showing that credible policy execution and external support can still deliver powerful FX recoveries in volatile markets.