Published on 09/01/2024
African currencies have recently faced significant challenges, particularly in their exchange rates against the esteemed US dollar.
The decline has sparked concerns regarding the economic stability of numerous African nations, affecting trade balances, inflation rates, and the purchasing power of their populations.
The devaluation of currencies in many African nations can be largely attributed to their heavy reliance on commodity exports. This is particularly evident in countries such as Nigeria and Angola, where commodities like oil or minerals make up a substantial portion of their export activities.
The volatility in global commodity prices, influenced by factors such as geopolitical events, supply and demand dynamics, and other economic uncertainties, exposes these nations to increased vulnerability against external shocks.
Furthermore, economic mismanagement and structural weaknesses within certain African economies have contributed to the depreciation of their currencies.
In 2023, several African countries, including Nigeria, Kenya, and Zambia, experienced a double-digit percentage weakening of their currencies against the USD.
Below are the worst performing African currencies against the US dollar in 2023:
| Rank | Currency | Depreciation percentage |
|---|---|---|
| 1 | Nigerian naira | -55.0 |
| 2 | Angolan kwanza | -39.2 |
| 3 | Malawian kwacha | -39.1 |
| 4 | Zambian kwacha | -29.5 |
| 5 | Burundi franc | -27.6 |
| 6 | Congolese franc | -24.0 |
| 7 | Kenyan shilling | -20.9 |
