- A strong currency provides economic relief by lowering the cost of imports such as fuel, food, and industrial machinery
- A stronger currency also benefits indebted countries by reducing the burden of servicing US dollar-based public loans
- Economist Daniel Kathali noted that when currency strength is supported by market fundamentals, it signals investor confidence, better business conditions, and more stable economic planning
Elijah Ntongai, an editor at TUKO.co.ke, has over four years of financial, business, and technology research and reporting experience, providing insights into Kenyan, African, and global trends.
Several African economies have experienced notable currency appreciation in 2025.
Source: Getty Images
The stability indicates an improvement in macroeconomic fundamentals and increased policy disciplines.
Countries such as Tunisia, Ghana, Morocco, Libya, and Botswana now hold some of the strongest currencies on the continent.
These countries are reaping the benefits of a stable currency owing to their economic outputs supporting their currencies.
The US dollar has also been significantly affected by the US-China trade conflicts and the Trump tariffs, which disrupted the global trade.
What is the benefit of a strong currency?
The appreciation comes at a time when many African economies are navigating high inflation, rising debt levels, and geopolitical disruptions that affect trade and commodity prices.
Speaking to TUKO.co.ke, Daniel Kathali, an economist, explained that many african countries rely heavily on imported fuel, food, industrial machinery, and processed inputs.
Therefore, stronger currency provides immediate economic relief by reducing the cost of imports and easing inflationary pressures, which “lowers the cost of living”.
“African countries are also very reliant on loans. Therefore, a strong currency helps countries lower the burden of servicing dollar-denominated public debt,” Kathali explained.
The economist further explained that when the strength of a currency is supported by market fundamentals rather than strict pegs or regulatory barriers, it becomes an “indicator of investor confidence, improving business conditions, and stable economic planning in a country.”
Which are the strongest currencies in Africa?
Below are the African currencies with the strongest exchange rates against the US dollar as of December 8, 2025.
Rank | Country | Currency | Currency value per US$ |
1 | Tunisia | Tunisian Dinar | 2.933 |
2 | Libya | Libyan Dinar | 5.435 |
3 | Morocco | Moroccan Dirham | 9.236 |
4 | Ghana | Ghanaian Cedi | 11.375 |
5 | Botswana | Botswanan Pula | 13.285 |
6 | Seychelles | Seychellois Rupee | 13.523 |
7 | Eritrea | Eritrean Nakfa | 15.00 |
8 | South Africa | South African Rand | 16.926 |
9 | Lesotho | Lesotho Loti | 16.948 |
10 | Namibia | Namibian Dollar | 16.948 |
What is the value of the Kenyan shilling?
In other news, the Kenyan shilling has held steady against the US dollar in 2025, trading between KSh 129 and 130 per dollar throughout the year.
According to the Kenyan government, the shilling’s performance has been supported by the sufficient foreign exchange reserves held by the Central Bank of Kenya (CBK).
Earlier, the International Monetary Fund (IMF) had raised concerns over the Kenyan shilling’s prolonged stability against the US dollar, describing it as “excessively stable” during their mid-October visit to assess Kenya’s economic situation.
Source: TUKO.co.ke
