Lagos, Nigeria – July, 2025
The Sierra Leonean Leone (SLE) has emerged as Africa’s weakest currency in 2025, according to recent financial analysis, as African currencies continue to struggle against the United States Dollar amid economic pressures, inflation, and fiscal instability.
A review of official exchange rates and monetary performance across the continent reveals that the Leone now trades at over 21,000 SLE to 1 USD, reflecting the severe depreciation of the currency despite the country’s 2022 redenomination exercise aimed at stabilizing the economy.
Following closely is the Zimbabwean Dollar (ZWL), which has remained volatile due to persistent hyperinflation and lack of investor confidence. Despite efforts to restore credibility in the financial system, the ZWL still fluctuates around 10,000 to 12,000 per USD, with market speculation often driving rates higher.
The Congolese Franc (CDF), Guinean Franc (GNF), and Malagasy Ariary (MGA) round out the top five weakest currencies, trading at 2,500, 9,500, and 4,600 units per USD, respectively. These currencies have struggled largely due to over-reliance on raw material exports, high debt burdens, and limited foreign reserves.
Other currencies in the bottom 10 include:
Ugandan Shilling (UGX) – over 3,800 to 1 USD
Tanzanian Shilling (TZS) – over 2,600 to 1 USD
Burundian Franc (BIF) – over 3,000 to 1 USD
Malawian Kwacha (MWK) – over 2,700 to 1 USD
Nigerian Naira (NGN) – trading above 1,400 to 1 USD, following recent policy reforms and floating of the exchange rate.
Analysts attribute the weak performance of these currencies to inflationary pressures, capital flight, dependence on imported goods, and political instability in several countries. In Nigeria, despite President Bola Tinubu’s reform agenda and renewed commitment to fiscal discipline, the naira has continued to weaken, largely due to forex supply constraints and subsidy removal impacts.
Experts have urged African central banks to adopt stronger monetary policies, curb excessive borrowing, and invest in local production to stabilize their currencies.
With the global financial environment tightening and commodity prices fluctuating, many African nations face an uphill task in rebuilding investor confidence and protecting the purchasing power of their citizens.