With many African countries facing low productivity, with the attendant impact of inflation, their currencies have been battered to new degrees not experienced for years.
With the values of currencies reducing, the natural impact is that the holders of those currencies become poorer. Nigeria is one economy currently suffering currency devaluation. But Nigeria is not unique in this position. Below are the seven worst performing currencies on the continent at the moment:
Zimbabwean Dollar
According to the latest ranking by Hanke’s Currency Watchlist, the Zimbabwean dollar has been rated the worst-performing currency in Africa against the United States dollar. The Zimbabwean dollar has depreciated against the USD by 97.33 per cent since January 2020. “Zimbabwe must dump the Zim dollar and adopt the USD immediately,” said Hanke in a Twitter post.
Sudanese Pound
Coming in second place is Sudan. The Sudanese pound has depreciated against the USD by 84.95 per cent since January 2020. According to Hanke, the only way to save Sudan’s pound and its economy is to install a currency board.
South Sudanese Pound
South Sudan ranks third on the list after the nation’s currency depreciated against the USD by 50.79 per cent since January 2020. According to Hanke, South Sudan’s economic death spiral never ends.
Nigerian Naira
Nigeria ranks 4th on the list of worst-performing currencies in Africa and 11th globally as the currency’s value has depreciated against the USD by 48.87 per cent since January 2020.
Ghana Cedis
Bank of Ghana report predicts more Cedi depreciation as depositors switch to open foreign currency accounts.
Bank of Ghana report predicts more Cedi depreciation as depositors switch to open foreign currency accounts.
Ghana ranks 5th in this week’s Hanke’s #CurrencyWatchlist of worst-performing currencies in Africa. According to Hanke, the Ghanaian Cedi has depreciated 42.57 per cent against the USD since January 2020.
“To save the Cedi, Ghana must mothball its central bank and install a currency board,” Hanke said in a post on his Twitter page.
Malawian kwacha
Malawi ranks 6th place in this week’s Hanke’s #CurrencyWatchlist. The kwacha has depreciated against the USD by 39.54 per cent since January 2020, by measure, and is yet another central bank junk currency,” said Hanke in a Twitter post.
Sierra Leonean Leone
Sierra Leone takes 7th place in this week’s Hanke’s #CurrencyWatchlist. The leone has depreciated against the USD by 31.23 per cent since January 1, 2020. According to Hanke, SLE’s currency redenomination has done nothing to end SLE’s economic death spiral.
