The USD to XAF exchange rate shows a bearish bias in the near term.
Key drivers influencing this trend include a projected decline in the USD due to expected Federal Reserve interest rate cuts in 2026, enhancing the appeal of the XAF. Additionally, strong recent appreciation of the XAF by nearly 2% suggests robust local economic activity. Lastly, ongoing discussions on reforms in the CFA franc system may also contribute to uncertainty regarding the XAF.
Over the next one to three months, the exchange rate is likely to trade in a stable range, reflecting recent patterns around current levels, slightly below average. An upside risk could stem from unexpected stability in the USD if global economic growth surprises positively. On the downside, any significant shifts in Fed policy or increased volatility in commodity prices could pressure the USD further.