In many African countries, inflation, fluctuating exchange rates, and economic uncertainty are making one question more relevant than ever:
Is it smarter to save in US dollars or keep your money in local currency in 2025?
Whether you’re a freelancer in Tanzania, a small business owner in Ghana, or a digital nomad working from Kenya, understanding currency stability can help you make better financial decisions — and protect your hard-earned income.
Let’s break down the pros and cons of saving in local currencies vs the US dollar in today’s economy.
What Makes a Currency “Stable”?
A stable currency maintains its purchasing power over time, doesn’t fluctuate too wildly in value, and is trusted for trade and savings. Most local currencies in Africa are influenced by:
- Political stability or instability
- Inflation rates
- Central bank policy
- Global commodity prices
- Supply and demand for foreign currency
In contrast, the US dollar is the world’s most traded and trusted currency, often seen as a safe haven during financial uncertainty.
Local Currencies in 2025: Still Losing Value?
In 2025, many African countries continue to battle inflation and local currency depreciation. Here are a few examples:
- Kenya: The Kenyan shilling has faced consistent pressure from rising import costs and debt servicing.
- Nigeria: The naira remains volatile due to policy shifts, oil market dependency, and low forex reserves.
- Ghana: After a sharp depreciation in previous years, the cedi is recovering slowly, but confidence remains fragile.
- Tanzania & Uganda: More stable in comparison, but still affected by regional economic dynamics and dollar demand.
For everyday people, this means the value of your savings may shrink without notice — unless you’re storing money in a more stable asset.
Why Many Are Choosing the Dollar
Here’s why saving in US dollars is becoming more popular in Africa:
- Stability: The dollar maintains value better during inflation.
- Global Use: Easy to use for international transactions or remittances.
- Online Work Payments: Most freelance platforms and global clients pay in USD.
- Cross-Border Flexibility: Easier to send or receive USD across countries.
Is It Legal to Save in USD?
Yes, in most African countries, it’s legal to hold, receive, or send money in dollars through licensed platforms like Tiers. With dollar accounts becoming more accessible through fintech apps, saving in USD is no longer just for the elite — it’s for everyone.
Security: Protecting Your Earnings
Let’s say you saved $500 worth of shillings in 2023. By 2025, that could be worth $420 due to local currency depreciation. But if you saved it directly in USD, the value is protected.
Tiers offers you:
✅ A secure USD account
✅ No hidden fees
✅ Daily interest on your dollar savings account
✅ P2P transfers in dollars
✅ Remittance across Africa
Dollar vs Local Currency: Quick Comparison
| Feature | Local Currency | US Dollar (USD) |
| Stability | Often unstable | Globally stable |
| Inflation Protection | Weak | Strong |
| International Use | Limited | Widely accepted |
| Value in 2 Years | Likely lower | Likely maintained |
| Access in Africa | Widely used but volatile | Growing via fintechs like Tiers |
Final Thought
In 2025, the US dollar remains more stable than most local African currencies.
For workers, savers, freelancers, and entrepreneurs, holding at least part of your money in dollars is not just smart — it’s essential.
Ready to protect your savings?
Open a free USD account with Tiers today and start saving in a currency that holds its value. Receive payments, send remittances, and access your money anywhere.
Get informed on how to do more with your money.
