The Nigerian Naira has been ranked among the worst-performing currencies in Sub-Saharan Africa.
The World Bank in a report titled “Africa’s Pulse: An analysis of issues shaping Africa’s economic future (October 2023 | Volume 28)”, stated that the Naira has weakened by 40 percent since the mid June 2023 devaluation.
The report also stated that the parallel exchange market rates is a factor compounding inflationary problems for some countries in the African region.
Part of the report reads;
“So far this year, the Nigerian naira and the Angolan kwanza are among the worst performing currencies in the region: these currencies have posted a year-to-date depreciation of nearly 40 per cent.
“The weakening of the naira was triggered by the central bank’s decision to remove trading restrictions on the official market. For the kwanza, it was the decision of the central bank to stop defending the currency as a result of low oil prices and greater debt payments”
Other currencies with major losses this year in Africa included South Sudan (33 per cent), Burundi (27 per cent), the Democratic Republic of Congo (18 per cent), Kenya (16 per cent), Zambia (12 per cent), Ghana (12 per cent), and Rwanda (11 per cent).
