Global Conflict Pushes African Currencies Down 3.2% — UNCTAD Report

A recent UNCTAD report shows African currencies weakened by 3.2% between late February and mid-March 2026 after rising tensions involving the US, Israel and Iran disrupted global capital flows. Earlier gains in emerging and frontier markets were erased as investors sought safer assets. Emerging market currencies fell from a 5.9% gain to a 1.3% loss, while frontier markets swung from 3.3% growth to a 0.7% decline. Regional differences reflected exchange rate policies, debt levels and past investment inflows. Despite global pressure, Nigeria’s naira held firm, strengthening from ₦1,425 to ₦1,363.5 per dollar on March 13. Analysts credit better FX liquidity, higher oil revenues and central bank measures for the relative stability. Economists warn that heavy reliance on imports, foreign investment and external borrowing still leaves many African economies vulnerable. Several countries are rolling out reforms to boost FX supply and stabilise their currencies.

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