The US dollar has lost about 10% of its value against major currencies since January 2025, its weakest performance since 2017. However, economists say a softer dollar is not entirely negative, as it creates space for further monetary‑policy easing and reduces the burden of dollar‑denominated debt for emerging markets.

Coface Chief Africa Economist, Aroni Chaudhuri, says a weaker dollar helps ease depreciation pressures on the rand, lowering imported inflation. But he notes that it also creates challenges for export‑driven industries that rely heavily on the US market,  particularly those currently facing significant tariffs.

Thami Ngubeni spoke to Coface Chief Africa Economist Aroni Chaudhuri.