Africa-Press – South-Africa. For some African countries, the unpleasant reality of currency devaluation remains a challenge even as the year passes its mid-point.
Many currencies, including the Egyptian pound and the Nigerian naira, have seen sharp declines in value in the previous year as a result of policy blunders, inflationary pressures, and a strong reliance on imports.
But for some of these countries, early indications of currency recovery are beginning to show up, whether as a result of stronger exports, stricter monetary policy, or outside funding.
Even small gains in weak currencies might yield significant benefits and lessen the strain on faltering economies if this trend keeps up.
Right off the bat, a weak currency often drives inflation, particularly in countries that rely on international imports. As these currencies show signs of recovery, inflation rates may begin to ease.
Lower inflation not only enhances consumer confidence but also allows central banks to explore lowering interest rates, which may encourage domestic borrowing and investment.
Weak currencies significantly increase the cost of imported goods, fuel, medication, food, and industrial machinery, exacerbating the cost-of-living issue for ordinary individuals.
A stronger local currency contributes to the reversal of this tendency.
For example, if the Nigerian naira or Ethiopian birr begins to appreciate, the cost of basics may eventually stabilize or perhaps fall. This would bring immediate help to millions of consumers facing exorbitant prices.
Furthermore, a currency weakening typically deters investors owing to concerns about capital loss and economic mismanagement.
When a traditionally weak currency begins to show indications of resilience, market sentiment can improve.
With that said, here are the 10 African countries with the weakest currencies, presently, according to the Forbes currency converter, last updated on the 23rd of June.
Save for Rwanda, the currency value for Nigeria, Malawi, Burundi, Tanzania, DRC, Uganda, Guinea, all increased this month compared to the top 10 list last month.
While the currency values for São Tomé & Príncipe and Sierra Leone remained the same.
Top 10 African countries with the weakest currencies in June 2025
source:africa.businessinsider
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