African Currencies Face Renewed Dollar Pressure Across several African markets, currencies have remained under pressure against the U.S. dollar. Strong global dollar demand, limited FX inflows, and cautious central bank interventions have tightened USD liquidity in countries including Nigeria, Ghana, Uganda, and Kenya. Market participants report that demand at official FX windows continues to exceed supply, pushing businesses and individuals to seek alternative but compliant FX channels to meet cross-border payment obligations. Nigeria: Naira Volatility Remains a Key Theme In Nigeria, the naira has shown short-term fluctuations in early January. While brief periods of strengthening were observed in the parallel market, overall sentiment remains cautious as dollar demand from importers, corporates, students, and international service payments stays elevated. For BDCs and IMTOs, this volatility has translated into: • Increased demand for structured FX access • Higher volume of foreign tuition, medical, vendor, and trade payments • Growing preference for licensed, transparent FX intermediaries Southern Africa: Rand Moves with Global Sentiment The South African rand experienced mixed performance during the first half of January, reacting to global inflation expectations, commodity prices (particularly gold), and investor risk appetite. Although South Africa maintains deeper FX liquidity than many African peers, rand movements continue to influence regional FX sentiment and pricing across Southern and East Africa, impacting cross-border trade and remittance corridors. What This Means for IMTOs and BDC Operators The January FX environment highlights three clear trends: 1. Sustained USD demand across Africa 2. Limited official FX supply in several key markets 3. Rising reliance on licensed intermediaries for cross-border settlements As regulatory scrutiny increases and informal channels face greater pressure, IMTOs and BDCs with strong compliance, liquidity access, and settlement capabilities are becoming critical infrastructure players. Market Outlook Analysts expect FX conditions to remain tight in the near term, with currency movements largely driven by: • Global interest rate expectations • Commodity price dynamics • Capital flows into and out of emerging markets For businesses operating across borders, predictability, execution certainty, and regulatory compliance are now as important as pricing. Bottom Line January 2026 reinforces a familiar reality: Africa's FX market continues to reward trusted, well-regulated operators who can deliver liquidity, transparency, and reliable settlement. For IMTOs and BDCs, this environment presents both a responsibility and an opportunity to bridge FX gaps, support legitimate flows, and provide stability in an increasingly complex currency landscape.