Top 10 African Countries with the Strongest Dollar Exchange Rate in 2025

In Summary

• A strong dollar holds advantages for Africans, but disadvantages for U.S. consumers and companies that rely on global markets for the bulk of their sales, as they benefit from cheaper imports and logistics.
• Countries in the Southern region of Africa, like Namibia and Lesotho, peg their currency and exchange rate to be at par with the South African Rand — which currently sits at 18.18 ZAR per USD.
• Northern African countries have the strongest currencies in Africa in 2025 when compared to their dollar exchange rates.

Deep Dive!!

For an African country, a strong dollar exchange rate means the country’s local currency is strong, and this affects American consumers and investors by reducing their purchasing power. Experts say that although it discourages foreign investments, it creates economic balance in controlling the global financial system.

When a local currency is weak, it forces the country to rely more on imports and foreign investments, thereby increasing the cost of goods and services, by reducing the purchasing power of its citizens. A weak dollar exchange rate and also increase in inflation in a country. However, some countries deliberately float their currencies and weaken their local currency to enable them to increase their foreign direct investments within a short period. The World Bank 2025 report ranks the top African countries with the currencies with the strongest dollar exchange rates in Africa in 2025; here are the top ten.

10. Lesotho Loti (LSL)

Recognizing the strength and economic significance of South Africa in the southern African region, Lesotho has pegged its local currency — the Lesotho Loti, to the South African Rand. This has strengthened the country’s exchange rate, especially as Lesotho's economy highly depends on South Africa for trade, economic stability, and remittances. However, experts reveal that while the action ensures stability, it limits the flexibility of Lesotho's monetary policies, which benefits South Africa more than it benefits Lesotho. The current exchange rate of the South African Rand is 18.18 ZAR to 1 USD.

9. Namibian Dollar (NAD)

Like Lesotho, Namibia has also pegged the Namibian Dollar to the South African Rand, which is currently 18.18 ZAR to 1 USD, citing its economic fluctuations as a fundamental reason. Unlike Lesotho, however, Namibia benefits from a more stable governance, a solid mining-driven economy, and prudent fiscal management. Regardless, experts reveal that the currency's dependence on the South African Rand makes the country vulnerable to external shocks affecting South Africa's economy.

8. South African Rand (ZAR)

Currently sitting at approximately 18.18 ZAR to 1 USD, the South African Rand is regarded as the king of the southern African region. It is currently on record to be the most traded currency in Africa, highly influenced by global commodity prices and investor sentiment. Although the currency has experienced its fair share of volatility due to U.S. tariffs and persistent internal political uncertainty, it has maintained some level of stability in recent times, and the talks of a new coalition government promise a strong rebound.

7. Eritrean Nakfa (ERN)

The Eritrean Nakfa has a fixed exchange rate of 15.00 ERN to 1 USD. The move by the Eritrean government to maintain a fixed figure for its exchange rate has ensured economic stability in the country. However, experts reveal that a deeper implication of the policy results in restricted economic growth and foreign direct investment, as investors view the strength of the currency as artificial, since the exchange rates are a direct impact of government-imposed controls, not market forces.

6. Ghanaian Cedi (GHS)

Ghana has been in the news in the past for having a weak local currency and volatility, but the government has stabilized the Cedi through the central bank interventions and increased offshore inflows. Today, the exchange rate of the Ghanaian Cedi is 14.25 GHS to 1 USD. On the good side, Ghana's economy, driven by gold, cocoa, and oil exports, has benefited from the fiscal tightening measures and consistent structural reforms embarked upon by the government.

5. Seychellois Rupee (SCR)

Over time, Seychelles has boasted a strong currency mainly as a result of its thriving tourism sector and some prudent fiscal policies introduced by its government, which have contributed immensely to strengthening the Seychellois Rupee. Currently, the exchange rate sits at approximately 13.64 SCR to 1 USD. Experts reveal that the currency’s strength is heavily backed by market forces due to the government’s initiative to diversify the economy and maintain low debt levels.

4. Botswana Pula (BWP)

The Botswana Pula is not only known for its strength, but it is also regarded as one of the most stable currencies in Africa, thanks to the conservative monetary policies implemented by the government. Other factors that have affected the strength of the currency positively are the country’s substantial foreign exchange reserves and diamond-led economy. Currently, the country’s currency is pegged to a basket of other currencies, which helps to provide a buffer against external economic vulnerability. The current exchange rate of the Botswana Pula is approximately 13.50 BWP to 1 USD.

3. Moroccan Dirham (MAD)

Northern African countries are known for their currencies maintaining their positions as the strongest currencies in the exchange rate market. The country’s diversified economy—encompassing agriculture, tourism, and manufacturing—supports the stability of the Moroccan Dirham. The country's confidence in directly managing the exchange rate regime and close economic ties with the European Union bolstered investor confidence. The current exchange rate sits at approximately 9.91 MAD to 1 USD.

2. Libyan Dinar (LYD)

Despite the many years of political unrest and economic instability, the Libyan Dinar, which is backed by vast oil reserves, remains strong. Sitting solid at approximately 4.82 LYD to 1 USD, the central bank's stringent currency controls, supported by oil revenues, have helped to maintain an artificially high exchange rate. However, experts reveal that the continued political instability and fluctuations in global oil prices pose huge risks to its stability of the country’s economic stability and its currency strength.

1. Tunisian Dinar (TND)

As of May 2025, the Tunisian Dinar maintains the pole position as the strongest currency in Africa. This strength of the Tunisian Dinar (TND) is attributed to the country's robust trade relationships with Europe, stabilized foreign exchange policies, and sustainable economy. Despite recent challenges like inflation and slow economic growth that have rocked the country, strict capital controls have prevented excessive currency fluctuations. The current exchange rate is approximately 3.11 TND to 1 USD.