African Currencies Strengthen Following Trump's Tariff Pause
In a week marked by volatility and shifting economic winds, both the Nigerian Naira and the Kenyan Shilling experienced notable fluctuations in response to international trade policy adjustments. Specifically, United States President Donald Trump's decision to pause tariff increases had a direct and observable impact on these African currencies and their respective financial markets.
In Nigeria, the Naira witnessed its most significant appreciation against the US dollar on Thursday, buoyed by the news of President Trump's tariff pause. Data from the Nigerian Exchange Marker (NFEM) indicated that the Naira strengthened to N1,605 per dollar, a substantial gain from the N1,629.93 recorded on Wednesday. This N24.93 appreciation marks the Naira's highest gain this week and reflects a broader trend of recovery following previous depreciation linked to Trump's initial tariff announcement on April 2, 2025. Interestingly, while the official market saw considerable gains, the black market remained stable, with Bureau De Change operators in Wuse Zone 4 reporting a consistent rate of N1,620 per dollar.
Meanwhile, in Kenya, the Nairobi Securities Exchange (NSE) mirrored the positive sentiment, rebounding strongly after Trump's declaration of a 90-day suspension of global tariffs. The NSE recorded gains across all major indices, with market capitalization increasing by KSh 34 billion, recovering over a third of the losses incurred earlier in the week. Specifically, the NSE 20 added 19.51 points to reach 2138.65, the NSE All-Share Index (NASI) rose by 2.16 points to 125.76, the NSE 25 increased by 73.33 points to 3387.48, and the NSE 10 gained 26.19 points to stand at 1277.04. Leading the charge in gains were companies like Sanlam (9.27%), Express (8.57%), I&M Holdings (7.82%), Kakuzi (7.06%), and Kenya Commercial Bank (6.37%).
The Kenyan Shilling also benefited from the reduced demand for US dollars, appreciating from its closing average of 129.67 on Wednesday to trade at an average of 129.42 per unit against the greenback on Thursday evening. Geopolitical economist Aly-Khan Satchu provided insights into the situation, suggesting that Trump's decision was influenced by the
