As of April 10, 2025, the Nigerian naira and Ghanaian cedi have maintained relative stability, attributed largely to proactive interventions by their respective central banks. This steadiness comes amid global trade uncertainties, particularly stemming from fluctuating U.S. tariff policies under President Donald Trump.
The Nigerian naira has exhibited resilience despite pressures from foreign investors seeking safer assets due to unpredictable U.S. tariff announcements. In intraday trading on Thursday, the naira was quoted around 1,620 to the dollar, compared to 1,530 naira a week earlier. Street trading mirrored this rate at 1,620 naira to the dollar. A currency trader noted, "We are seeing a lot of foreign investors trying to leave the market. But with the 90-day freeze (in Trump's tariffs), we expect some slower movement." The Central Bank of Nigeria's (CBN) consistent dollar sales have been instrumental in mitigating the naira's depreciation. In recent weeks, the CBN sold $148 million to 29 lenders and conducted a significant auction of $876.3 million to 26 banks at a cutoff rate of 1,495 naira per dollar, aiming to ease currency pressures and promote price discovery.
Similarly, Ghana's cedi has remained stable, trading at 15.45 per dollar on Thursday, consistent with the previous week's close. The Bank of Ghana's timely interventions have effectively met increased demand for dollars, particularly from offshore entities reacting to U.S. tariff concerns. Chris Nettey, head of trading at Stanbic Bank Ghana, observed, "The cedi opened the week on the back foot against the dollar, as US tariff concerns spurred offshore demand for the greenback. However, timely intervention by the Bank of Ghana helped contain the pressure." Looking ahead, sustained central bank support is anticipated to maintain the cedi's stability.
In contrast, other African currencies face potential depreciation. Uganda's shilling is under pressure due to ongoing investor concerns over U.S. tariff impacts, trading at 3,680/3,690 to the dollar, with expectations of further volatility. Zambia's kwacha is also experiencing depreciation, influenced by declining copper prices, a key export commodity. The kwacha has weakened from 27.98 to 28.39 per dollar, reflecting the broader challenges faced by commodity-dependent economies in the region.
The proactive measures by the central banks of Nigeria and Ghana have been pivotal in stabilizing their currencies amid global economic disruptions. These interventions highlight the critical role of monetary authorities in managing currency stability and mitigating external pressures. Conversely, the experiences of Uganda and Zambia underscore the vulnerabilities of economies heavily reliant on commodity exports and the broader impact of international trade policies on emerging markets.