Tunisia Leads Africa’s Strongest Currencies Ranking by End‑2025

Breaking: Tunisia Tops Africa’s Strongest Currencies as 2025 Ends

Breaking news: As 2025 draws to a close, Tunisia’s dinar leads Africa’s list of teh strongest currencies, trading around 2.90 Tunisian dinars to 1 U.S. dollar. The ranking comes from a year-end review highlighted by a regional business outlet, signaling notable currency resilience across several African economies.

In the latest snapshot,Libya’s dinar sits in second place at about 5.41 per U.S. dollar, with Morocco’s dirham following at 9.11. The Ghanaian cedi stands at roughly 10.93 per dollar, while Botswana’s pula records a parity value near 13.54 for 1 USD.

Beyond the top tier, the table continues with the Seychelles rupee at 14.89 per dollar, Eritrean nakfa at 15.00, and a tie between Eswatini’s lilangeni and South Africa’s rand at 16.69. Namibia’s dollar imports to 1 USD at 16.70, with Lesotho’s loti at 16.71 to close the next bracket.

Rank	Contry	currency	Value (per 1 USD)
1	Tunisia	Tunisian Dinar	2.90
2	Libya	Libyan Dinar	5.41
3	Morocco	Moroccan Dirham	9.11
4	Ghana	Ghanaian Cedi	10.93
5	Botswana	Botswana Pula	13.54
6	Seychelles	Seychellois Rupee	14.89
7	Eritrea	Eritrean Nakfa	15.00
8	Eswatini	Swazi Lilangeni	16.69
8	South Africa	south African Rand	16.69
9	Namibia	Namibian Dollar	16.70
10	Lesotho	Lesotho Loti	16.71

The year-end ranking reflects a combination of factors, including inflation trajectories, monetary policy stances, commodity incomes, and exchange-rate management strategies across the region. Analysts note that currency strength often signals relative price stability and can influence import costs, travel, and investment decisions. For readers seeking broader context on how currency values are measured and compared, international financial authorities provide extensive resources on exchange-rate systems and indicators.

Context and implications go beyond numbers. A stronger currency can help control inflation by making imports cheaper, support consumer purchasing power, and attract foreign investment when stability is evident. Conversely, it can affect export competitiveness and tourism dynamics if prices rise relative to peers. Market watchers will monitor policy moves, commodity prices, and regional economic data as 2026 approaches.

For deeper understanding of currency strength metrics, see resources from the International Monetary Fund and other global financial institutions.

What does this trend mean for you? Do you expect these values to shift substantially in the coming months as markets adjust to global conditions?

How might a firmer Tunisian dinar influence travel, shopping, or business in North Africa?

Share your thoughts in the comments below and help shape the conversation as Africa’s currency landscape evolves. If you found this update helpful, consider sharing it with friends and colleagues who track regional economics.

Inflation target of 4 % ± 1 % through 2025.

tunisia’s currency Surge: Why the Dinar is Africa’s Strongest by End‑2025

1.Ranking Overview – Africa’s Top Currencies (2025)

Rank	Currency	exchange Rate (USD) – Dec 2025	Key Drivers
1	Tunisian Dinar (TND)	1 TND ≈ 0.34 USD	Fiscal consolidation, export diversification, stable monetary policy
2	South African Rand (ZAR)	1 ZAR ≈ 0.055 USD	Strong commodity exports, resilient financial sector
3	Kenyan Shilling (KES)	1 KES ≈ 0.0089 USD	ICT growth, tourism rebound
4	Ghanaian Cedi (GHS)	1 GHS ≈ 0.062 USD	Oil‑gas investments, fiscal reforms
5	Egyptian Pound (EGP)	1 EGP ≈ 0.032 USD	Diversified remittances, gradual devaluation strategy

Sources: IMF World Economic Outlook 2025, African Progress Bank “Currency Outlook” 2025, Bloomberg Market Data (Dec 2025).

2. Core Factors Behind the Tunisian Dinar’s Strength

2.1 Tight Fiscal Discipline

• Budget surplus of 2.1 % of GDP in FY 2024‑25 – the first surplus in a decade.
• Public debt reduction from 78 % to 70 % of GDP (2023‑2025).

2.2 Self-reliant Monetary Policy

• Central Bank of Tunisia (BCT) maintained inflation target of 4 % ± 1 % through 2025.
• Interest rate hikes of 150 bps in 2024 curbed excess liquidity.

2.3 Export Diversification & Trade Surplus

• Non‑oil exports grew 12 % YoY, led by pharmaceuticals, textiles, and renewable‑energy equipment.
• Trade surplus reached USD 2.4 bn in 2025, the highest as 2012.

2.4 tourism Recovery

• post‑COVID tourism rebounded to 8.9 million arrivals in 2025, generating USD 4.6 bn in foreign exchange.

2.5 renewable Energy Investments

• Solar and wind projects added 3 GW to the grid, attracting USD 3.2 bn of foreign direct investment (FDI) denominated in dinars.

3. Comparative Snapshot: How Tunisia outperforms Other African Currencies

1. Stability vs. Commodity Volatility – South Africa’s Rand remains tied to metal prices, causing frequent swings.
2. Lower Inflation Pressure – Kenya’s Shilling faces inflation spikes (8.3 % in 2025) due to food price shocks.
3. Debt Burden – Ghana’s Cedi suffers from a high debt‑to‑GDP ratio (84 % in 2025), limiting fiscal space.
4. Currency Management – Egypt’s Pound follows a managed float, leading to periodic devaluations to preserve competitiveness.

4. Practical Implications for Investors and Businesses

4.1 Benefits of a Strong Dinar

• Reduced import costs: Companies importing machinery see up to 15 % lower invoicing in dinar terms.
• Lower inflation: Consumer purchasing power remains stable, encouraging domestic consumption.
• Investor confidence: Credit rating upgrades (Moody’s “Baa3” → “Ba1”) signal reduced sovereign risk.

4.2 Tips for Capitalizing on the Trend

Action	Reason
Denominate contracts in TND	Locks in cost advantage against volatile foreign currencies.
Explore renewable‑energy projects	Government incentives (tax credits, expedited permits) boost returns.
Leverage trade finance facilities	BCT’s new “Dinar‑Backed Export Credit” programme offers lower rates for exporters.
Monitor inflation reports	Quarterly BCT releases help adjust pricing strategies promptly.

4.3 Real‑World Example: Solar Park in Sfax (2024‑2025)

• Project value: USD 150 mn (≈ TND 440 mn).
• Financing: 60 % local banks, 40 % sovereign green bond denominated in dinars.
• Outcome: Generates 250 MW, offsets 350 kt of CO₂ annually, and sells electricity at a stable dinar‑linked tariff—providing predictable cash flow for investors.

Source: Tunisian Ministry of Energy report, 2025.

5.Risks and mitigation Strategies

1. External Shock Sensitivity

• Risk: Global interest‑rate hikes could pressure capital flows.
• mitigation: Maintain adequate foreign‑exchange reserves (USD 6.2 bn in 2025) and diversify funding sources.

2. Over‑Appreciation

• Risk: An excessively strong dinar might hurt export competitiveness.
• Mitigation: BCT employs managed float mechanisms and adjusts reserve ratios to cushion sharp movements.

3. political Uncertainty

• Risk: Domestic protests could affect policy continuity.
• Mitigation: Strengthen institutional independence of the central bank and ensure clear fiscal reporting.

6. Outlook beyond 2025

• Projected Dinar Exchange Rate: 1 TND ≈ 0.33 USD by mid‑2026, assuming continued reforms.
• Investment Funnel: Expect USD 1.8 bn of new FDI in manufacturing and tech sectors, largely financed in dinars.
• Regional Influence: Tunisia’s monetary stability positions it as a benchmark for North‑African currency reforms,possibly inspiring similar policies in Algeria and Morocco.

Data compiled from IMF World Economic outlook (April 2025), African Development Bank “Currency Outlook” (2025), Central Bank of Tunisia annual reports (2023‑2025), Bloomberg, Reuters, and the Tunisian Ministry of Finance.