Naira Missing as Report Shows Top 10 Strongest Currencies in Africa in 2025
- A recent Forbes Currency Converter has shown Africa's 10 strongest currencies as of March 26, 2025
- The currencies emerged as the strongest in comparison to their performance against the US dollar in the previous month
- However, the Nigerian currency did not make the list after depreciating to the lowest in five months to N1,600 per dollar
CHECK OUT: Education is Your Right! Don’t Let Social Norms Hold You Back. Learn Online with LEGIT. Enroll Now!
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
Financial experts have said that a strong and stable currency is a key economic asset for any country, especially in Africa, where countries struggle for long-term economic growth and global competitiveness.
A robust and resilient currency is critical to combating inflation, exchange rate stability and investor confidence, which are critical to sustained economic development.
Source: Getty Images
African countries seek currency stability
Recently, African countries have been wading through economic shifts, stressing the need for stable currencies.
A strong currency withstands inflation and lowers import costs, making financial planning more predictable for businesses and investors.
Top 10 African currencies in Africa
A report by Forbes Currency Converter shows Africa’s strongest currencies as of March 26, 2025.
- Tunisian Dinar - 3.09 per dollar
- Libyan Dinar - 4.83 per dollar
- Moroccan Dirham - 9.57 per dollar
- Botswana Pula - 13.62 per dollar
- Seychelles Rupee - 14.37 per dollar
- Eritrean Nakfa - per dokkar
- Ghanaian Cedi - 15.49 per dollar
- Lesotho Loti - 18.15 per dollar
- Namibian Dollar - 18.15 per dollar
- South African Rand 18.15 per dollar
The naira falls to a five-month low
The development comes as the official and parallel market windows have drifted further apart as the naira hit a five-month low in the Nigerian Foreign Exchange Market (NFEM).
On Friday, April 4, 2025, the naira depreciated to N1,600 per dollar, down from N1,569 it traded the previous day.
The last time the naira traded near that rate was on December 3, 2024, when it exchanged at N1,608 per dollar.
The December depreciation came shortly after the Central Bank of Nigeria (CBN) newly launched the NFEM to boost transparency and liquidity.
CBN intervenes in the FX market
The apex bank then mandated banks and currency dealers to migrate to the Bloomberg BMatch System to ensure transparency.
Experts say Friday’s naira depreciation was expected as the CBN prolonged its intervention in the forex markets.
However, on Saturday, April 5, 2025, CBN intervened by releasing $197.71 million into the FX market to boost liquidity.
CBN Director of the Financial Markets Department, Omolara Duke, stated in a weekend circular that the transfer was conducted through sales to authorised dealers.
According to Duke, the action addressed the growing volatility in international financial markets.
This came after the United States slapped fresh import tariffs on several economies.
Source: Getty Images
The CBN attributed these changes to the global market turbulence caused by U.S. tariffs.
Additionally, the price of crude oil fell more than 12% to roughly $65.50 per barrel, further straining countries that export oil, such as Nigeria.
On April 4, 2025, the CBN provided $197.71 million to combat this.
“In line with its commitment to ensuring adequate liquidity and supporting orderly market functioning, the CBN facilitated market activity on Friday, April 4, 2025, with the provision of US$197.71 million through sales to Authorised Dealers,” CBN said.
The bank emphasised that this action advances its objective of having a stable, open, and effective foreign exchange market.
The naira depreciates in the black market
Meanwhile, the naira also depreciated in the parallel market on Friday, April 4, 2025, trading at N1,565 from N1,560.
Data from the CBN shows that dealers quoted the dollar at a high of N1,625 and a low of N1,519 on Friday, April 4, 2025.
Naira experiences biggest fall in 2025
Legit.ng earlier reported that the Nigerian naira hit its lowest in 30 days on Thursday, April 3, 2025, in the official Nigerian Foreign Exchange Market (NFEM).
CBN data shows that the naira depreciated to N1,569 per dollar from N1,534 the previous day.
The depreciation is the lowest the local currency has gone in over 30 days as analysts fear it might fall off the N1,500 ceiling against the dollar.
PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ find the “Recommended for you” block on the home page and enjoy!
Source: Legit.ng
