The South African rand and Nigerian naira have been
ranked among the global currencies posting strong gains against the U.S. dollar
over the past year, reflecting shifting market dynamics and improving domestic
conditions.
- The
South African rand and Nigerian naira have been among the world’s
top-performing currencies against the US dollar over the past year. - The
rand gained 16.4% and the naira 13.5% against the dollar, ranking them
third and seventh globally. - Positive
domestic trends and economic reforms, along with rising metals prices,
have supported the rand’s strength. - Several
currencies globally have posted double-digit gains, influenced by capital
flows and economic fundamentals.
The rand led Africa’s performance, ranking third on the list
with a 16.4% gain against the dollar. The Nigerian naira ranked seventh,
recording a notable 13.5% increase, placing both currencies among the top
global performers.
Business Insider Africa earlier reported that the rand
entered 2026 at its strongest level since 2022, supported by positive domestic
trends, including ongoing economic reforms and rising metals prices.
Efforts by the government to stimulate growth in Africa’s
most industrialised economy, where expansion has averaged less than 1% over the
past decade, are beginning to show results.
Global currencies rally
Globally, several currencies have posted double-digit gains
against the dollar over the past year, driven by shifting capital flows,
evolving monetary policy expectations, and stronger economic fundamentals.
According to data compiled by Visual Capitalist, which
tracked countries with annual GDP of at least $250 billion, the Israeli shekel
emerged as the top performer, gaining 20.2% year-on-year.
A key driver behind the broad rise in global currencies is
the weakening U.S. dollar. Analysts attribute the decline to growing market
concerns over the unpredictability of U.S. policy direction.
Earlier in 2025, expectations of further Federal Reserve
rate cuts also weighed on the dollar, as investors shifted capital in search of
higher returns elsewhere. – Business Insider Africa