Namibian Dollar ~2% stronger vs USD in 2026
The South African rand – and by extension the Namibia dollar – has strengthened against the United States (US) dollar in 2025, marking the strongest annual gain since 2009.
The move was driven mainly by a softer US dollar backdrop, with expectations of US rate cuts, fiscal concerns, and policy uncertainty weighing on the dollar during the year.
Strong precious metals prices also supported South Africa’s external position, with gold and platinum providing a tailwind through export receipts and foreign exchange inflows as gold reached record highs.
Domestic South African factors played a supporting role, with improving fiscal outcomes and contained inflation helping sentiment at the margin, while two credibility signals stood out – South Africa exited the Financial Action Task Force greylist in October 2025, easing a key reputational and compliance overhang for cross-border financial flows, followed by a Standard & Poor’s sovereign credit rating upgrade in November, described by the national treasury as the first upgrade from a major agency in nearly two decades.
Into early 2026, the rand and Namibia dollar have remained relatively firm, helped by periods of improved global risk sentiment, continued support from commodity prices, and US policy rhetoric leaning against dollar strength.
US president Donald Trump has publicly brushed off the dollar’s decline, arguing that a weaker dollar supports US export competitiveness.
Gains in 2026 have been uneven so far, with volatile day-to-day swings in the US dollar and global risk appetite, but the tone has broadly remained supportive after 2025’s strong performance.
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