Africa’s best-performing currency is the rand, which came in third place with a 16.4% increase against the dollar in the first quarter of 2026. The Nigerian and South African currencies performed among the best in the world, with the Nigerian naira coming in at number seven with a noteworthy 13.5% increase.
According to Business Insider Africa, the rand began 2026 at its highest level since 2022 due to favourable domestic trends such as continuing economic reforms and rising metals prices.
The government’s attempts to boost growth in the most developed economy in Africa, where growth has averaged less than 1% over the past ten years, are starting to pay off. 
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Several currencies posted double-digit gains against the dollar over the last year due to shifting capital flows, changing monetary policy expectations, and stronger economic fundamentals.
Expectations of additional Federal Reserve rate in 2025 cuts weighed on the dollar, as investors shifted capital to seek higher returns elsewhere.
The weakening of the U.S. dollar drives the global currency rally. Analysts attribute the decline to growing market concerns about the unpredictable nature of U.S. policy direction.
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