African currencies posted mixed performances against the U.S. dollar in May 2026, with only a few recording meaningful gains amid shifts in capital flows, commodity prices, central bank actions, and domestic macroeconomic conditions.
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The data compiled by Nairametrics Research from central banks show that the Zambian Kwacha, Egyptian pound, and the Namibian Dollar were the best-performing currencies on the continent during the month.
While many African currencies continue to face pressure from global economic uncertainty and domestic inflation concerns, the currencies on this list managed to post positive returns.
Best performing currencies in Africa in May 2026
Moroccan Dirham (0.53%)
The Moroccan dirham appreciated by 0.53% in May, with the exchange rate improving to 9.19 MAD/$ from 9.23MAD/$.
Although the gain was modest compared to other currencies on the list, the performance reflects the relative stability of Morocco’s managed exchange rate regime. The country continues to benefit from strong tourism receipts, remittances, and diversified export earnings.
Congolese Franc (0.94%)
The Congolese franc strengthened by 0.94% during the month to 2,307 CDF/$ moving from 2,329CDF/$.
The appreciation suggests improved foreign exchange supply conditions and reflects efforts by authorities to maintain stability in a market that has historically experienced significant volatility.
Botswana Pula (0.97%)
Botswana’s pula gained 0.97% against the dollar in May, with the exchange rate improving to 13.39BWP/$ from 13.52BWP/$.
The currency’s performance was supported by Botswana’s relatively strong external position and prudent monetary management, allowing it to outperform many of its regional peers.
Lesotho Loti (2.53%)
The Lesotho loti appreciated by 2.53%, strengthening to 16.24LSL/$ from 16.66LSL/$.
As the loti is pegged to the South African rand through the Common Monetary Area(CMA), its performance closely mirrored movements in South Africa’s currency during the month.
Eswatini Lilangeni (2.53%)
The lilangeni recorded a 2.53% gain in May, moving to 16.24SZL/$ from 16.66SZL/$.
Like the Lesotho loti, the lilangeni is also linked to the South African rand and therefore benefited from the broader strength recorded across Southern African currencies that are closely linked to the South African rand.
Seychellois Rupee (2.53%)
The Seychellois rupee appreciated by 2.53%, strengthening to 13.54SCR/$ from 13.89SCR/$.
The gain reflects continued support from the country’s tourism-driven economy, which remains a major source of foreign exchange inflows and contributes to overall currency stability.
South African Rand (2.56%)
South Africa’s rand strengthened by 2.56% in May, improving to 16.24ZAR/$ from 16.67ZAR/$.
The rand benefited from improved investor sentiment, stronger commodity market conditions, and renewed interest in emerging market assets. Given its role as one of Africa’s most traded currencies, its performance also influenced several neighboring currencies.
Namibian Dollar (2.57%)
The Namibian dollar gained 2.57%, appreciating to 16.24NAD/$ from 16.67NAD/$.
The currency’s movement closely tracked the South African rand due to Namibia’s monetary arrangement with South Africa, allowing it to benefit from the rand’s strength during the month.
Egyptian Pound (2.61%)
The Egyptian pound emerged as the second-best performing currency in Africa, appreciating by 2.61% /$ to 52.22EGP/$ from 53.62EGP.
The improvement suggests stronger foreign currency inflows and continued stabilization in Egypt’s foreign exchange market following a period of significant volatility in recent years. The currency’s performance is particularly notable given Egypt’s position as one of Africa’s largest economies.
Zambian Kwacha (2.91%)
The Zambian kwacha was Africa’s best-performing currency in May 2026, gaining 2.91% against the U.S. dollar.
The currency strengthened from 18.88ZMW/$ at the beginning of the month to 18.33ZMW/$ by month-end. Zambia’s performance may have been supported by improved market sentiment, foreign exchange inflows, and developments in the country’s mining sector, which remains a key source of export earnings.
How the naira performed
Nigeria’s naira ranked 12th among Africa’s best-performing currencies in May 2026, recording a modest gain of 0.15% against the U.S. dollar. The currency strengthened to N1,372/$ by month-end from N1,374/$ at the start of the month.
While the appreciation was smaller than those recorded by the top 10 currencies, the naira remained relatively stable throughout the month, reflecting improved conditions in Nigeria’s foreign exchange market.
The currency’s performance was supported by a rise in the country’s external reserves, which increased from $48.36 billion at the beginning of May to $49.34 billion as of May 26, 2026. The nearly $1 billion increase in reserves helped strengthen the country’s foreign exchange buffer and supported confidence in the naira.
Although the Nigerian naira narrowly missed the top 10 ranking, its stable performance highlights the reduced volatility in Nigeria’s foreign exchange market compared to previous years
What this means
Southern African currencies dominated the list. Seven of the ten best-performing currencies came from Southern Africa, highlighting the region’s relatively strong foreign exchange performance during the month.
Currencies linked to the South African rand accounted for several top positions. The rand’s appreciation helped lift the Namibian dollar, Eswatini’s lilangeni, and Lesotho’s loti due to their close monetary relationships.
the gains recorded across the ranking were generally modest, suggesting that while some currencies strengthened, foreign exchange markets across Africa remain cautious amid global economic uncertainty, inflation pressures, and fluctuating capital flows.
