10 Weakest Currencies in Africa

List of Top 10 Weakest Currencies in Africa

Here is the updated ranking of the weakest African currencies in 2025, based on official and parallel market exchange rates:

What Are the Weakest Currencies in Africa?

The weakest currencies in Africa are those with the highest exchange rates relative to the USD, meaning it takes more local currency units to equal one US dollar. These currencies often suffer from long-term depreciation, macroeconomic instability, and high inflation.

Countries like São Tomé and Príncipe, Sierra Leone, and Guinea top the list due to fragile economies and limited access to foreign reserves.

What Determines a Weak Currency?

A weak currency is typically the result of poor economic fundamentals. Factors that lead to currency weakness include:

• High Inflation: Erodes purchasing power and lowers investor confidence.
• Current Account Deficits: More imports than exports weaken demand for the local currency.
• Political Instability: Uncertainty deters investment and fuels capital flight.
• Low Foreign Reserves: Limits central bank’s ability to stabilize currency.
• Debt Overload: External debt obligations can lead to IMF intervention and devaluation.
• Uncontrolled Monetary Policy: Excessive printing of money without asset backing.

What Factors Make These African Currencies Weak?

Let’s break down why these currencies rank among the weakest in Africa in 2025:

São Tomé and Príncipe Dobra (STN)
Despite its peg to the euro in theory, the dobra trades at ~22,000 STN/USD in practice. The economy is small, reliant on cocoa exports and aid, with low trade volume and high external dependency.

Sierra Leonean Leone (SLL)
After a currency redenomination in 2022, the Leone has lost value rapidly due to inflation over 30%, a weak fiscal base, and growing trade imbalances.

Guinean Franc (GNF)
The GNF continues to weaken despite Guinea’s mineral wealth. Political unrest and low forex reserves have dragged its value down significantly.

Ugandan Shilling (UGX)
Although considered relatively stable, the UGX still trades at ~3,600 per USD due to low industrial output and reliance on commodity exports.

Burundian Franc (BIF)
Burundi faces extreme poverty, low investor confidence, and aid dependence, all contributing to its currency’s weakness.

Congolese Franc (CDF)
The DRC’s economic dependence on copper and cobalt exports creates volatility. Weak governance and corruption risk further pressure the CDF.

Tanzanian Shilling (TZS)
TZS depreciation is driven by current account deficits and declining tourism post-pandemic. The exchange rate hovers around 2,600 TZS/USD.

Malawian Kwacha (MWK)
The MWK has seen significant depreciation due to forex shortages, drought impacts on agriculture, and IMF-influenced policy shifts.

Nigerian Naira (NGN)
Following FX liberalization in 2024, the NGN has depreciated from 750 to ~1,550/USD in 2025. Inflation and dwindling reserves contribute to its weakness.

Ethiopian Birr (ETB)
Despite GDP growth, the birr continues to depreciate due to war-related spending, trade deficits, and inflation above 20%.

Weakest vs Strongest African Currencies

Let’s compare the weakest African currencies with the strongest:

Libya’s Dinar (LYD) remains Africa’s strongest currency, supported by oil surpluses and low imports.

How Do Traders View These Weak Currencies?

From a trader’s perspective, the 10 weakest currencies in Africa are considered:

• Non-tradeable on major FX platforms
• High-risk for carry trade or hedging
• Indicators of macroeconomic stress in respective regions

Traders monitor these currencies not for speculation, but to assess risks in sovereign debt, foreign direct investment, and currency mismatch exposures in African markets.

Conclusion

The 10 weakest currencies in Africa in 2025 highlight the ongoing economic challenges many African nations face from inflation and low foreign reserves to political instability and heavy reliance on imports. As traders and investors assess risks across the continent, understanding these currencies becomes critical in evaluating macroeconomic stability, foreign exchange exposure, and capital flows.

At Ultima Markets, we provide in-depth market analysis and real-time data to help traders navigate volatile currency environments. Whether you’re monitoring African FX trends, global currency shifts, or cross-border investment risks, our platform gives you the insights and tools you need to make informed decisions.

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