Africa feels impact of global tensions as currencies weaken – UNCTAD

African currencies lost value after rising tensions involving the United States, Israel, and Iran affected global financial markets.

According to a new report by the United Nations Conference on Trade and Development (UNCTAD), investors pulled money out of emerging and frontier markets during the period of uncertainty, causing currencies across Africa to weaken by 3.2 percent.

The report explained that between February 27 and March 13, 2026, conflict related concerns disrupted global capital flows, reduced investor confidence, and increased market volatility in developing economies.

Before the tensions escalated, many emerging and frontier market currencies had recorded gains. However, those gains disappeared as investors moved their money into safer assets.

What the report showed

African currencies fell by 3.2 percent after earlier gaining 8.7 percent.

Emerging market economies moved from a 5.9 percent increase to a 1.3 percent decline.

Frontier markets dropped from 3.3 percent growth to 0.7 percent depreciation.

Countries in the Americas recorded the largest decline at 3.6 percent, while Asia remained more stable and recovered to a 2 percent appreciation.

UNCTAD said the differences across regions were influenced by:

Exchange rate policies

Debt levels and sustainability

Previous foreign investment inflows

The amount of foreign investor participation in local markets

Concerns for African economies

The report warned that African countries remain vulnerable to external shocks because many depend heavily on:

Imports

Foreign investments

External borrowing

Other pressures include:

Higher global energy prices increasing inflation

Geopolitical uncertainty reducing investor confidence

Tougher global financial conditions raising debt concerns and encouraging capital outflows

Nigeria’s naira performance

Despite global pressure, Nigeria’s naira showed some resilience.

Data from the Central Bank of Nigeria showed the naira strengthened to N1,363.5 per dollar on March 13, 2026, compared with N1,425 per dollar on March 9, 2026.

Exchange rates during the period included:

March 12 — N1,370/$

March 11 — N1,373.5/$

March 10 — N1,390.5/$

March 6 — N1,398/$

Analysts linked the naira’s relative stability to:

Better foreign exchange liquidity

Higher oil earnings

Continued government and central bank efforts to improve investor confidence

Bigger picture

Global markets remain sensitive to developments in the Middle East because of fears of disruptions to energy supply and rising oil prices.

Economists noted that countries with weaker economic structures and greater dependence on foreign investors faced stronger currency pressures.

Nigeria and several African countries continue implementing reforms aimed at improving foreign exchange supply and stabilising their currencies.