Which African currencies are pegged?
Every pegged currency in Africa
Nine African currencies hold a fixed exchange rate against another currency rather than floating on the market. Three are tied to the South African rand, five to the euro, and one to the US dollar.
| Currency | Code | Pegged to | Fixed rate | Notes |
|---|---|---|---|---|
| West African CFA franc | XOF | Euro | 655.957 XOF = 1 EUR | Fixed since 1999 when France adopted the euro; the rate carries over from the earlier French franc peg. Shared by 8 countries. |
| Central African CFA franc | XAF | Euro | 655.957 XAF = 1 EUR | Same fixed rate as XOF but a separate currency and central bank. Shared by 6 countries; the two are not interchangeable. |
| Comorian franc | KMF | Euro | 491.96775 KMF = 1 EUR | Pegged since 1999, carried over from a French franc link. Comoros has no widely used subunit. |
| Cape Verdean escudo | CVE | Euro | 110.265 CVE = 1 EUR | Pegged since 1998, reflecting Cape Verde's close trade and remittance ties with Portugal and the EU. |
| São Tomé dobra | STN | Euro | 24.5 STN = 1 EUR | Pegged after the 2018 redenomination that dropped three zeros, backed by Portuguese support. |
| Djiboutian franc | DJF | US dollar | 177.721 DJF = 1 USD | A currency board arrangement running continuously since 1949 — one of the longest unbroken pegs anywhere in the world. |
| Lesotho loti | LSL | South African rand | 1 LSL = 1 ZAR | Common Monetary Area member; the rand circulates as legal tender in Lesotho alongside the loti. |
| Namibian dollar | NAD | South African rand | 1 NAD = 1 ZAR | Common Monetary Area member; rand notes are accepted throughout Namibia. |
| Eswatini lilangeni | SZL | South African rand | 1 SZL = 1 ZAR | Common Monetary Area member; the rand circulates freely in Eswatini. |
Because these rates are fixed by law or agreement rather than set by trading, the converters on this site use the official peg for these pairs, not a market snapshot. Rates against other currencies still move: the CFA franc is fixed to the euro, so its dollar rate rises and falls with EUR/USD.
Why peg a currency at all?
Predictability for trade and aid
A fixed rate removes exchange-rate risk for importers, exporters and anyone receiving remittances. For small economies heavily tied to one partner — Cape Verde to the EU, Djibouti to dollar-denominated shipping and port revenue — that stability is worth a great deal.
Imported credibility on inflation
Pegging to the euro effectively borrows the European Central Bank’s inflation record. The CFA franc zones have run far lower and steadier inflation than most of their neighbours, which is the main argument its defenders make.
The cost: no independent monetary policy
A pegged country cannot cut rates in a downturn or let its currency weaken to make exports cheaper. Critics of the CFA franc argue the peg keeps the currency overvalued for commodity exporters and ties monetary policy to European conditions rather than African ones. This is a genuinely contested debate, not a settled question.
What about the rest?
The other 33 African currencies float or are managed floats, meaning their value is set by trading, sometimes with central bank intervention. Several — including the Egyptian pound, Nigerian naira and Ethiopian birr — have moved from tightly managed rates toward more market-determined ones in recent years, which is why each depreciated sharply against the dollar when the change took effect.
A managed float is not the same as a peg. If you see a currency quoted at a suspiciously round number that never moves, it is likely pegged; if it drifts daily, it is floating.
Frequently Asked Questions
Is the CFA franc pegged to the euro?
Yes. Both the West African CFA franc (XOF) and the Central African CFA franc (XAF) are fixed at 655.957 per euro. They share that rate but are separate, non-interchangeable currencies.
Which African currencies are pegged to the US dollar?
The Djiboutian franc is the main one, fixed at 177.721 per dollar under a currency board that has run since 1949. Most other African currencies float against the dollar.
Is the Namibian dollar the same as the rand?
They are pegged 1:1 and rand notes are accepted throughout Namibia, but they are separate currencies. Namibian dollars are generally not accepted inside South Africa.
Do pegged currencies still change against the dollar?
Yes. A currency pegged to the euro holds a fixed euro rate, but its dollar rate moves whenever EUR/USD moves. Only the pegged pair itself is fixed.
Why do people criticise the CFA franc?
Critics argue the euro peg keeps the currency overvalued for commodity exporters, ties monetary policy to European rather than African conditions, and reflects a colonial-era arrangement. Supporters point to consistently lower inflation than in neighbouring floating currencies. Both positions are widely held.