Within the numerous financial panorama of African nations, forex power performs an important function in figuring out the buying energy and financial stability of a nation. As we delve into the monetary panorama of Africa in 2024, it turns into important to focus on the African nations with the weakest currencies.
This text, primarily based on Hanke’s Foreign money Watchlist, gives an insightful overview of the highest 7 African nations whose currencies have considerably depreciated, reflecting the financial challenges these nations face.
Topping the checklist of African nations with the weakest currencies, Zimbabwe’s monetary woes are epitomized by the dire state of the Zimbabwean greenback. Experiencing a staggering 76.74% loss in worth towards the USD since January 2022 and a near-total depreciation of 97.33% since January 2020, Zimbabwe’s forex disaster is a transparent indicator of hyperinflation and financial instability that plagues the nation.
The Sudanese pound, grappling with the financial repercussions of political turmoil, ranks because the second weakest forex in Africa. The forex has seen an 84.95% depreciation towards the USD since January 2020, illustrating the profound impression of Sudan’s political crises on its financial well being.
South Sudanese Pound
The South Sudanese pound, one other forex dealing with important depreciation, displays the continued financial challenges in South Sudan. With a 50.79% depreciation towards the USD since January 2020 and an additional 28% since early 2022, it underscores the nation’s battle for financial stability amidst ongoing conflicts.
Nigeria’s financial system, one of many largest in Africa, will not be proof against forex challenges. The Nigerian Naira has depreciated by 48.87% towards the USD since January 2020, with predictions of additional devaluation post-elections in February 2024, highlighting the continued financial pressures.
The Ghanaian Cedi finds itself among the many weakest currencies in African nations as a result of a 42.57% depreciation towards the USD since January 2020. This decline mirrors the rising price of residing and financial hardships confronted by Ghanaians.
Malawi’s forex, the Kwacha, has seen a 39.54% depreciation towards the USD since January 2020. The numerous devaluation in Could 2022 by 25% and the rising power prices depict a struggling financial system making an attempt to stabilize.
Sierra Leonean Leone
The Sierra Leonean Leone rounds up the checklist with a 31.23% depreciation towards the USD since January 2020. With a rise in public debt to 79% of GDP in 2021, Sierra Leone faces important financial challenges that mirror on its forex’s worth.