African currencies have recently suffered significant losses, particularly against the celebrated US dollar.
AMBusiness reported that the depreciation has generated concerns about some African countries’ economic stability, affecting trade balances, inflation rates, and residents’ purchasing power.
Here are the African currencies that will perform the poorest against the US dollar in 2023:
Countries such as Nigeria, Kenya, and Zambia saw double-digit percentage depreciation of their currencies versus the USD in 2023.
The depreciation of several African currencies can be traced in large part to their reliance on commodities exports. This is especially visible in nations like Nigeria and Angola, where commodities like oil and minerals account for a large portion of their export activities.
Here, the fluctuations in worldwide commodity prices due to variables such as supply and demand dynamics, geopolitical events, and other economic uncertainties, leave these countries more susceptible to external shocks.
Furthermore, mismanagement of the economy and structural flaws in several African economies have worsened currency depreciation.
Several African countries, including Nigeria, Kenya, and Zambia, would see double-digit percentage depreciation of their currencies versus the USD in 2023.
The following are the African currencies that will fare the poorest versus the US dollar in 2023:
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
