Nigeria’s legal tender, the Naira has been named by the World Bank as one of the worst-performing currencies in Sub-Saharan Africa.
This disclosure was made in a report titled “Africa’s Pulse: An analysis of issues shaping Africa’s economic future (October 2023 | Volume 28)”.
In the report, it was stated that the Naira has weakened by 40 percent since the mid June 2023 devaluation.
It was also noted that the parallel exchange market rates are also compounding inflationary problems for some countries in the African region.
The report partly read;
“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 significant losses so far in 2023 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).
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