BY SIFISO NHLABATSI
MBABANE – The Lilangeni strengthened against major international currencies during June 2026, supported by a resilient Rand, easing pressure on the US Dollar and improving investor confidence despite continued global geopolitical uncertainties.
According to the latest Recent Economic Developments report released by the Central Bank of Eswatini for May/June 2026, the domestic currency appreciated against the US Dollar, the Pound Sterling and the Euro during the review period. The Lilangeni strengthened from an average of E16.50 per US Dollar in May to E16.40 in June. By month-end, it was trading at E16.43 against the US Dollar.
The report attributes the stronger performance to the resilience of the South African Rand, which remained firm even as precious metal prices moderated after previously supporting the currency. While uncertainty surrounding the Strait of Hormuz and the slow progress of negotiations on a Memorandum of Understanding between the United States and Iran continued to pose risks to global markets, the Rand remained relatively stable.
On the regional front, investor confidence was bolstered by assurances from South African President Cyril Ramaphosa that planned demonstrations against undocumented immigrants would be conducted within the framework of the law. The government’s commitment to maintaining public order helped sustain market stability, providing further support to the Rand and, by extension, the Lilangeni.
The report also notes that the United States Federal Reserve’s decision to leave its policy interest rate unchanged weakened support for the US Dollar, contributing to the appreciation of the Rand/Lilangeni. However, it cautions that the possibility of future US interest rate increases remains, as inflation in the United States continues to exceed the Federal Reserve’s 2 per cent target.
Against other major currencies, the Lilangeni appreciated by 1.7 per cent against the Pound Sterling and by 1.9 per cent against the Euro during June. The currency averaged E21.86 per Pound Sterling and E18.89 per Euro before closing the month at E21.76 and E18.74, respectively.
The stronger currency coincided with encouraging domestic economic indicators. Credit extended to the private sector rose to E23.9 billion at the end of May, representing growth of 2.5 per cent month-on-month and 10.6 per cent compared with the same period last year. Meanwhile, the country’s trade deficit narrowed slightly to E198.8 million in June from E211.4 million in May.
The report further highlights improving economic activity, with seasonally adjusted Gross Domestic Product expanding by 6.1 per cent year-on-year in the first quarter of 2026, up from a revised 5.8 per cent in the previous quarter, reflecting stronger performance in the secondary sector and continued resilience across the broader economy.
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(Courtesy Pic)
