11 Weakest Currencies in Africa (2025) Ranked by Value

List of Weakest Currencies in Africa (2025) Top 11 Ranking

Below is a table summarizing the top 11 African countries with the lowest value currencies as of 2nd June 2025.

What are the Weakest Currencies in Africa?

Below is a list of the top 11 weakest currencies in Africa, as of 2nd of June 2025. Each reflects broader macroeconomic difficulties and regional monetary pressures that impact their performance in the global markets..

1. Sierra Leonean Leone (SLE)

2. Guinean Franc (GNF)

3. Ugandan Shilling (UGX)

4. Burundian Franc (BIF)

5. Congolese Franc (CDF)

6. Tanzanian Shilling (TZS)

7. Malawian Kwacha (MWK)

8. Nigerian Naira (NGN)

9. Rwandan Franc (RWF)

10. Ethiopian Birr (ETB)

11. Somali Shilling (SOS)

Sierra Leonean Leone (SLE)

The Sierra Leonean Leone has undergone significant depreciation, currently trading at approximately SLE/USD = 0.00004 as of 2nd June 2025.

The government's 2022 redenomination policy aimed to stabilize the currency but has yet to yield substantial results. High inflation in African economies, limited export diversification, and structural economic challenges continue to undermine Leone's value.

The Leone is currently the weakest African currency by value, with over 20,000 leones needed to buy a single US dollar, which ultimately makes Sierra Leone one of the African countries with the lowest currency value.

Guinean Franc (GNF)

With an exchange rate of approximately GNF/USD = 0.00012 as of 2nd June 2025, the Guinean Franc reflects the country's ongoing economic struggles.

Despite Guinea's rich mineral resources, infrastructural deficits and political instability hinder effective resource utilization, leading to a weak currency.

The Guinean Franc has been particularly volatile in the informal market, where parallel exchange rates often differ significantly from official rates.

Ugandan Shilling (UGX)

The Ugandan Shilling trades at approximately UGX/USD = 0.00028 as of 2nd June 2025. Factors such as declining remittances, a widening trade deficit, and inflationary pressures have contributed to its depreciation.

While the government has initiated infrastructure projects to stimulate the economy, their impact on currency stabilization remains to be seen.

The Bank of Uganda has maintained relatively high interest rates to curb inflation and support the shilling.

Burundian Franc (BIF)

Currently, the Burundian Franc exchanges at approximately BIF/USD = 0.00034 as of 2nd June 2025. Burundi's economy faces challenges including low export earnings, heavy reliance on external aid, and limited industrialization, all contributing to the currency's weakness.

The BIF remains one of the least-traded currencies in the region, with limited availability in international foreign exchange markets.

Congolese Franc (CDF)

The Congolese Franc stands at approximately CDF/USD = 0.00034 as of 2nd June 2025. Despite the Democratic Republic of Congo's vast mineral wealth, ongoing conflicts, governance issues, and infrastructural challenges impede economic stability, affecting the currency's strength.

The government has struggled to attract sustained foreign investment due to currency instability and legal uncertainty.

Tanzanian Shilling (TZS)

Trading at approximately TZS/USD = 0.00037 as of 2nd  June 2025, the Tanzanian Shilling has experienced slight appreciation in recent months, which made it appear in the list of the weakest African currencies of 2025. However, rising import bills and limited foreign exchange reserves continue to pose challenges to its stability.

The Bank of Tanzania actively intervenes in the forex market to smooth out excessive volatility.

Malawian Kwacha (MWK)

The Malawian Kwacha exchanges at approximately MWK/USD = 0.00058 as of 2nd June 2025. Persistent trade imbalances, low foreign direct investment, and reliance on donor aid contribute to its vulnerability to external shocks.

In November 2023, Malawi devalued the Kwacha by over 40% in an effort to secure IMF support and address its widening fiscal gap.

Nigerian Naira (NGN)

The Nigerian Naira currently trades at approximately NGN/USD = 0.00063 as of 2nd June 2025. Despite recent appreciation, the Naira has faced significant depreciation due to foreign exchange shortages, declining oil revenues, and policy reforms including the removal of fuel subsidies.

The Central Bank of Nigeria continues to operate multiple exchange windows, leading to a gap between official and parallel market rates. Because of its global prominence, the Naira frequently appears in forex market hours discussions and is often used to assess market sentiment toward frontier economies.

Rwandan Franc (RWF)

With an exchange rate of approximately RWF/USD = 0.00071 as of 2nd June 2025, the Rwandan Franc has depreciated against regional currencies like the Kenyan Shilling.

Factors such as increased foreign exchange inflows into neighboring countries and monetary policy adjustments have influenced its performance.

Rwanda maintains a managed float regime and uses targeted interventions to prevent excessive currency depreciation.

Ethiopian Birr (ETB)

The Ethiopian Birr trades at approximately ETB/USD = 0.0075 as of 2nd June 2025. Economic challenges including inflation, political unrest, and foreign exchange shortages have contributed to its depreciation.

The Birr remains overvalued on the official market compared to parallel rates, creating pressure for gradual devaluation.

Somali Shilling (SOS)

As of June 2025, the Somali Shilling (SOS) trades at approximately SOS/USD = 0.0018 as of 2nd June 2025.

Despite some stabilization efforts, Somalia's currency remains weak due to ongoing political instability, limited central bank authority, and a heavy reliance on informal financial systems.

The lack of a unified monetary policy and the prevalence of counterfeit currency further exacerbate the Shilling's vulnerability in the foreign exchange market.

Honorable Mentions: Weakest Currencies in Africa (12-15)

Here are some honorable mentions for the weakest currencies in Africa as of 2nd June 2025, ranked 12 to 15.

These currencies, while not in the top 11, still exhibit significant depreciation against the US Dollar and reflect underlying economic challenges.

Factors Leading to Currency Depreciation in Africa

When we talk about currency weakness, especially in African economies, it’s not just about high exchange rates.

A weak currency usually signals deeper structural issues within a country's economy, including:

• High inflation: When prices rise quickly, purchasing power falls, and the local currency loses credibility.

• Low foreign reserves: Without sufficient USD, gold, or euros, a country can’t defend its currency during external shocks.

• Low or unstable interest rates: Weak monetary policy discourages investment and capital inflows.

• Trade deficits: Countries that import more than they export often face constant demand for foreign currency, driving depreciation.

• Political instability: Conflicts, weak governance, and uncertainty erode investor confidence and lead to capital flight.

In Africa, many of the weakest currencies reflect a combination of these factors, making them highly sensitive to both domestic and global pressures.

How You Can Use Weak African Currencies in Trading?

Weak African currencies may seem unattractive at first glance, but they can present strategic opportunities for informed traders.

Understanding how these currencies behave under pressure helps you adapt your strategy and risk management approach. Here’s how to use them effectively:

• Volatility Trading: Weak currencies often experience sharp fluctuations. Traders can apply volatility trading strategies using tools like Average True Range (ATR) or Bollinger Bands to capture short-term price swings.

• Emerging Market Hedging: If you live, earn, or do business in countries with weak currencies, trading against those currencies (e.g., USD/NGN or EUR/UGX) can help you hedge against local inflation and currency risk.

• Carry Trade Caution: Some weak currencies offer high interest rates, which might seem attractive for carry trading. However, this comes with high risk. Always evaluate macroeconomic stability and inflation trends before entering a carry trade involving weak currencies.

• Market Sentiment Analysis: Weak currencies are often indicators of broader market sentiment. Monitoring trends in African currencies can give you insights into geopolitical risk, capital flow, and even commodity market sentiment.

• Contrarian Opportunities: In some cases, oversold weak currencies may present bounce-back opportunities. Using technical reversal patterns like inverted hammer candlesticks or bullish divergences can help you spot short-term retracements.

Weakest vs. Strongest African Currencies in 2025

Africa's currency landscape in 2025 is marked by wide disparities. Some currencies are gaining strength through sound economic policy, while others continue to weaken due to inflation, political instability, and external debt.

Strongest African Currencies
Strong currencies like the Tunisian Dinar (TND), Libyan Dinar (LYD), and Moroccan Dirham (MAD) top the list in terms of value. These strongest currencies in Africa are supported by stable monetary policy, low inflation, and strong trade balances.

Weakest African Currencies
On the other end, the São Tomé and Príncipe Dobra (STD), Sierra Leonean Leone (SLE), and Guinean Franc (GNF) remain among the weakest, reflecting broader economic distress. These currencies struggle with devaluation, high inflation, and reliance on imports.

Conclusion

Many African currencies continue to face pressure in 2025 due to long-standing economic and political challenges. From inflation and trade deficits to weak government finances, the reasons behind currency depreciation are often interconnected. While some countries are working toward more stable financial systems, others still rely heavily on imports, foreign aid, and narrow export sectors.

Tracking the weakest currencies in Africa gives a clearer picture of the continent’s financial struggles and how global and local events affect everyday economies. It also helps traders and analysts follow trends, assess risks, and stay informed about shifts in the broader forex landscape.