A stronger dollar, persistent inflationary pressures, and elevated energy costs weighed heavily on African economies in May, as escalating tensions linked to the Iran conflict triggered fresh volatility across global financial markets.
Although global sentiment improved slightly following ceasefire signals between the United States and Iran, fears of a prolonged conflict in the Middle East continued to keep crude oil prices elevated, increasing pressure on import-dependent African economies and tightening household spending across the continent.
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Against this backdrop, fewer African currencies recorded gains against the United States dollar in May compared to April, highlighting growing strain across the region’s foreign exchange markets.
Data compiled from African Markets, a real-time trading platform, showed that only seven of the 17 major African currencies tracked appreciated against the dollar in May, down from 12 currencies that strengthened in April. The performance reflected uneven resilience among economies benefiting from stronger export
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