The World Bank has listed the Naira among the worst-performing currencies in Sub-Saharan Africa.
The world body stated this in a report titled “Africa’s Pulse: An analysis of issues shaping Africa’s economic future (October 2023 | Volume 28).”
It stated that the Naira has weakened by 40% with the mid June 2023 devaluation.
The report also noted that the parallel market exchange rates are also compounding inflationary problems for some countries in the Africa region.
Excerpts of the report:
“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 found to have recorded significant losses so far in 2023 in Africa include: 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).