Naira Records Strong Gains, Ranks Among Africa's Best-Performing Currencies in 2026
- The Nigerian naira has emerged as one of Africa's best-performing currencies in the first half of 2026
- New data shows the naira appreciated against the US dollar, outperforming most major African currencies
- Zambia's kwacha ranked first, while only four African currencies recorded gains during the period
Legit.ng journalist Dave Ibemere has experience in business journalism, with in-depth knowledge of the Nigerian economy, the stock market, and broader market trends.
Nigeria's currency, the naira, has been ranked as the second-best-performing currency in Africa during the first half of 2026, defying a difficult economic environment that saw most currencies across the continent lose value against the US dollar.
According to data compiled by real-time trading platform African Markets, only four of the 17 major African currencies tracked appreciated between January and the end of June, while 13 depreciated.
Source: Getty Images
The performance came despite heightened global market uncertainty triggered by the US-Iran conflict, which disrupted oil supplies, pushed Brent crude above $100 per barrel at its peak, and increased inflationary pressures across many African economies.
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Although an interim ceasefire later eased supply concerns and crude prices retreated to around $71 per barrel, the geopolitical shock left many African currencies under pressure.
Naira ranks second in Africa
The data showed that Zambia's kwacha emerged as Africa's strongest-performing currency, appreciating by 7.73% against the US dollar in the first six months of the year.
Nigeria's naira followed in second place with a 3.36% appreciation.
The naira strengthened from N1,422.63/$ in January to N1,374.76/$ by the end of June, reflecting improved foreign exchange liquidity, stronger foreign portfolio inflows and the impact of ongoing reforms in Nigeria's foreign exchange market.
South Africa's rand ranked third after gaining 0.90%, while Namibia's dollar came fourth with an appreciation of 0.66%, BusinessDay reports.
Afreximbank warns of pressure on African currencies
In its African Economic Outlook 2026, Afreximbank said the external shock from the Middle East conflict weakened many African currencies, particularly in oil-importing countries.
The bank noted that by the end of March 2026, the currencies of 29 African countries had depreciated against the US dollar, with 10 recording declines of more than two percentage points compared to baseline projections.
It added that higher petroleum import costs and rising transport expenses had intensified inflationary pressures across several economies.
Afreximbank also warned that continued external shocks could raise debt servicing costs, weaken fiscal balances and increase pressure on foreign exchange reserves.
Source: Getty Images
African currencies that appreciated in H1 2026
Rank | Currency | Appreciation |
1 | Zambian kwacha | 7.73% |
2 | Nigerian naira | 3.36% |
3 | South African rand | 0.90% |
4 | Namibian dollar | 0.66% |
African currencies that weakened
13 currencies recorded losses against the US dollar during the period. Tanzania's shilling posted the biggest decline at 5.62%, followed by Ghana's cedi (5.46%) and Botswana's pula (5.16%).
Zimbabwe's ZiG fell 4.08%, Egypt's pound lost 3.90%, Tunisia's dinar declined 2.43%, the CFA franc weakened 2.11%, while Morocco's dirham depreciated 1.83%.
Uganda's shilling, Mauritius' rupee, Kenya's shilling, Rwanda's franc and Malawi's kwacha also ended the first half of the year weaker against the US dollar.
Naira exchange rate
Earlier, Legit.ng reported that the Nigerian currency, the naira, depreciated slightly against the United States dollar in the official market.
Data from the CBN showed that the Nigerian Foreign Exchange Market (NFEM) recorded a closing rate of N1,502 per dollar at the end of trading.
Source: Legit.ng
