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The Nigerian Naira has been ranked among the poorest-performing currencies in Sub-Saharan Africa by The World Bank.
According to a report titled “Africa’s Pulse: An Analysis of Factors Shaping Africa’s Economic Future (October 2023 | Volume 28),” the Naira has witnessed a significant decline of 40 percent in its value since the devaluation that took place in mid-June 2023.
Furthermore, the report highlights that parallel exchange market rates are exacerbating inflationary challenges in various African countries.
The report states, “In the current year, the Nigerian Naira and the Angolan Kwanza stand out as two of the weakest currencies in the region, with both currencies experiencing a year-to-date depreciation of nearly 40 percent.”
The Naira’s depreciation was primarily triggered by the central bank’s decision to eliminate trading restrictions on the official market. In the case of the Kwanza, the central bank’s choice to discontinue defending the currency is attributed to low oil prices and increased debt obligations.
Other African currencies that have suffered significant losses in 2023 include South Sudan (33 percent), Burundi (27 percent), the Democratic Republic of Congo (18 percent), Kenya (16 percent), Zambia (12 percent), Ghana (12 percent), and Rwanda (11 percent).
