- A new currency ranking has listed the top-performing currencies in Africa in May 2025, as the naira crashes
- The list shows that the Tunisian dinar emerged as the continent’s strongest currency, trading at 2.95 dinars to the dollar
- Also, the Ghanaian currency, the cedi, edged out some top performers, becoming one of the strongest currencies in Africa in May 2025
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
According to a new ranking, in April 2025, the Tunisian Dinar strengthened, emerging as Africa’s strongest currency at 2.95 per dollar.
The Tunisian currency’s gain was attributed to tight foreign exchange regulations, monetary policy tightening, and a stable economic environment.
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Source: Getty Images
The Tunisian dinar is Africa’s strongest currency in May
The dinar and other African currencies, such as Libya, Morocco, and Botswana, have remained strong.
Also, the Ghanaian currency has seen improvements relative to previous performance, emerging as one of the top-performing currencies in Africa, with analysts predicting further gains for the cedi.
The move was due to some monetary policy measures in the past month, which provided relief for the cedi.
Ghanaian cedi edges out top performers
In the review period, the cedi’s resurgence helped to reduce import costs.
The Ghanaian currency improved significantly, rising from 15.46 cedi per dollar to 13.20, edging out Seychelles, Eritrea, and Botswana on the fourth spot.
Like Ghana, several African countries rely heavily on imports for essential goods such as fuel, machinery, and pharmaceuticals.
Experts say a weak currency means that imports become more expensive, worsening inflation and reducing purchasing power.
A currency’s strength is perceived as a show of economic stability and sound fiscal management.
In May, the countries in the top 10 saw significant improvements in their currency values.
The South African rand is relegated
Business Insider reports that while South African, Namibian, and Lesotho currencies slumped, Eritrean currency remained steady.
The report said that the South African rand dropped from the eighth position to the 10th, dipping below Namibian and Lesotho currencies.
The rand depreciated from 18.62 per dollar to 17.88.
The naira falls as CBN intervenes
Meanwhile, Legit.ng earlier reported that the Central Bank of Nigeria (CBN) intervened in the official foreign exchange market to boost liquidity and boost the naira’s value.
The financial sector regulator conducted foreign exchange interventions, selling $50 million to authorised banks on Tuesday, May 27, 2025, at N1,581 and N1,581.92.
The strongest African currencies
- Tunisia dinar: 2.97 per dollar
- Libya: 5.43 per dollar
- Morocco 9:17 per dollar
- Ghana cedi: 13.20 per dollar
- Botswana: 13.38 per dollar
- 14.21 per dollar
- Eritrea: 15.00 per dollar
- Namibia: 17.83 per dollar
- Lesotho: 17.83 per dollar
- South Africa: 17.88 per dollar
The naira depreciates amid CBN’s interventions
The latest interventions came after the apex bank sold $190 million to the FX market last week, which experts say has fizzled away.
Data from the Nigerian Foreign Exchange Market (NFEM) shows that the naira reversed its two-week gain, depreciating to N1,583.73 per dollar in the official market on Tuesday, May 27, 2025, as demand pressures mounted.
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Source: Getty Images
Tuesday’s NFEM data shows that currency dealers quoted the dollar at a high of N1,591 and a low of N1,581.92.
Naira trades high, British pound rises
Legit.ng earlier reported that the British pound sterling rose to a new high in the FX market in the week ending May 23, 2025, amid growth forecasts due to sales data.
Information from the foreign exchange market showed that the sterling was exchanged at 1.35.38 on Friday, May 23, 2025, as the pound gained 1.93% against the USD.
According to reports, investors dumped the US greenback as President Donald Trump’s administration renewed the trade war, threatening to slap the European Union with higher tariffs, thereby strengthening the pound.
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Source: Legit.ng
