Naira ranks second best performing currency in Africa for first half of 2026

The Nigerian naira has emerged as the second best performing currency in Africa during the first half of 2026, new data shows. Only four of 17 major African currencies tracked appreciated against the US dollar between January and June, and the naira was one of them.

Naira gains 3.36% as only four African currencies rise

According to data from real-time trading platform African Markets, the naira appreciated by 3.36% against the US dollar in the first six months of the year. It strengthened from N1,422.63/$ in January to N1,374.76/$ by the end of June. The performance came despite heightened global market uncertainty triggered by the US-Iran conflict, which disrupted oil supplies and pushed Brent crude above $100 per barrel at its peak. An interim ceasefire later eased supply concerns and crude prices retreated to around $71 per barrel.

Zambia's kwacha ranked first among African currencies, appreciating by 7.73%. South Africa's rand came third with a gain of 0.90%, while Namibia's dollar placed fourth with an appreciation of 0.66%. The remaining 13 currencies tracked all lost value against the dollar during the period.

Improved FX liquidity and reforms behind naira strength

The naira's gains reflect improved foreign exchange liquidity, stronger foreign portfolio inflows, and the impact of ongoing reforms in Nigeria's foreign exchange market. In its African Economic Outlook 2026, Afreximbank said the external shock from the Middle East conflict weakened many African currencies, particularly in oil-importing countries. The bank noted that by the end of March 2026, the currencies of 29 African countries had depreciated against the US dollar, with 10 recording declines of more than two percentage points compared to baseline projections. It added that higher petroleum import costs and rising transport expenses had intensified inflationary pressures across several economies. Afreximbank also warned that continued external shocks could raise debt servicing costs, weaken fiscal balances, and increase pressure on foreign exchange reserves.

Which African currencies fell the most

Tanzania's shilling posted the biggest decline at 5.62%, followed by Ghana's cedi at 5.46% and Botswana's pula at 5.16%. Zimbabwe's ZiG fell 4.08%, Egypt's pound lost 3.90%, Tunisia's dinar declined 2.43%, the CFA franc weakened 2.11%, and Morocco's dirham depreciated 1.83%. Uganda's shilling, Mauritius' rupee, Kenya's shilling, Rwanda's franc, and Malawi's kwacha also ended the first half of the year weaker against the US dollar.

Earlier data from the Central Bank of Nigeria showed that the Nigerian Foreign Exchange Market recorded a closing rate of N1,502 per dollar at the end of trading on a separate day, indicating the naira still faces occasional pressure despite its strong half-year performance.

For Nigerian businesses and consumers, the naira's ranking as Africa's second best currency offers some relief from the persistent depreciation that has driven up import costs and inflation. Sustained FX reforms and portfolio inflows will be critical to maintaining this momentum through the second half of 2026.