African Currencies Drop 3.2% Amid Geopolitical Tensions

A report by the United Nations Conference on Trade and Development (UNCTAD) reveals that African currencies have fallen by 3.2% following geopolitical tensions involving the United States, Israel, and Iran. This decline is attributed to a global investor retreat from emerging and frontier markets, leading to heightened volatility and weakened investor sentiment.

The report indicates that from February 27 to March 13, 2026, African currencies were among the worst affected, with the United States experiencing a 3.6% decline post-conflict. The naira, Nigeria's currency, has fluctuated during this period but showed resilience, appreciating to N1,363.5 on March 13, 2026, from a record low of N1,425 on March 9, 2026.

The Central Bank of Nigeria (CBN) has been working to stabilize the exchange rate amid inflationary pressures, with the naira marking its first gain in April 2024.