Naira misses Forbes list of Africa's strongest currencies in July despite modest gain

Nigeria's naira recorded a modest gain in July 2026 but failed to make Forbes' ranking of Africa's 10 strongest currencies. Kenya's shilling and Zambia's kwacha showed resilience amid global economic uncertainty.

Forbes released its ranking of Africa's strongest currencies for July 2026 against a backdrop of global economic pressure. The naira recovered slightly during the month but still did not secure a place among the continent's top performers.

Why currency strength matters

A stable currency helps curb inflation, lower import costs, attract foreign investment and boost consumer purchasing power. Countries with stronger currencies spend less in local currency when importing fuel, machinery, pharmaceuticals and industrial equipment, reducing production costs and easing price pressures.

For low-income households, this translates into more stable prices for essential goods and services. Currency stability also attracts foreign direct investment because investors prefer economies with lower exchange rate risk.

Naira's July performance

Data from the Central Bank of Nigeria (CBN) showed the naira appreciated by N4.19 against the US dollar in July. It closed at N1,368.22/$1 on the final trading day, a 0.3% improvement from N1,372.41/$1 at the start of the month.

Despite the monthly gain, the currency weakened weekly, losing N6.13 compared with the previous week's official exchange rate. In the parallel market, the naira depreciated by N7 to close at N1,415/$1, widening the gap between official and unofficial markets to 3.45%.

Trading activity improved. Total interbank foreign exchange turnover rose 26.97% month-on-month to $3.39 billion, up from $2.67 billion in June, although the number of completed deals declined.

Africa's strongest currencies

According to the Forbes Currency Converter, Africa's strongest currencies against the dollar in July 2026 were:

Tunisian Dinar (TND), Libyan Dinar (LYD), Moroccan Dirham (MAD), Ghanaian Cedi (GHS), Seychellois Rupee (SCR), Botswanan Pula (BWP), Eritrean Nakfa (ERN), South African Rand (ZAR), Swazi Lilangeni (SZL) and Namibian Dollar (NAD).

Outlook for the naira

A Reuters survey of foreign exchange traders projected that several African currencies, including Nigeria's naira, Ghana's cedi and Uganda's shilling, could face renewed pressure in coming weeks. Kenya's shilling is expected to remain stable, supported by strong diaspora remittances, while Zambia's kwacha benefits from robust copper exports.

For Nigeria, the exclusion from Forbes' ranking underscores the challenges ahead. Continued reforms, stronger foreign exchange inflows and sustained investor confidence will be needed for the naira to compete among Africa's strongest currencies.