sierra leones currency.webp
The Digest:

A January 2026 assessment of African currencies against the US Dollar identifies seven with the weakest exchange rates. The ranking, subject to shifts from inflation, devaluation, and economic shocks, highlights nations facing significant import cost pressures. São Tomé & Príncipe’s Dobra is the continent’s weakest at 22,282 per USD, followed by Sierra Leone’s Leone (20,970) and Guinea’s Franc (8,700). Others on the list are Madagascar, Uganda, Burundi, and Tanzania.

Key Points:
  • The weak exchange rates directly increase the cost of essential imported goods like fuel, food, and medicine, straining household budgets.
  • This currency fragility signals underlying economic vulnerabilities, often tied to external dependencies and domestic fiscal challenges.
  • For businesses, it raises operational costs and complicates planning, potentially discouraging foreign investment and hindering economic growth.
  • The ranking reflects broader continental economic disparities and the varied success of monetary policies in stabilizing national currencies.
  • Persistent marginal improvements in these rates could ease inflation and potentially allow central banks to consider stimulative interest rate cuts.
While indicative of current pressures, these rankings are dynamic, with outcomes heavily dependent on both domestic policy and global economic trends.

Sources: Forbes currency calculator data and economic analysis.