According to bloomberg, African currencies faced significant challenges in 2024, with some experiencing alarming decline against the United States dollar. Among the top worst performing currencies in Africa, the Nigerian Naira takes the lead, undergoing a staggering 55% decline against the US dollar.
Following closely behind in the list of top worst performing currencies in Africa is the Angolan Kwanza, which depreciated by 39.2% in 2023. This decline poses challenges for Angola, as it grapples with economic diversification and reducing its dependence on oil exports.
Kenya, considered one of Africa’s more stable economies, was not immune to currency challenges. The Kenyan Shilling experienced a 20.9% depreciation against the United States Dollar, attributed to a confluence of internal and external factors. These include political uncertainties, trade imbalances, and global economic shifts that collectively contribute to the Shilling’s struggles (read also – Top 10 of the strongest currencies in Africa).
Top Worst Performing Currencies in Africa (2024)
1. Nigerian Naira (NGN)
According to the latest ranking by bloomberf, the Nigerian naira tops the list of worst performing currencies in Africa and the worst performing currency globally. The Nigerian Naira depreciated against the United States dollar by 55% in 2023.
2. Angolan Kwanza (AOA)
Following closely behind Nigeria is the Angolan Kwanza, which depreciated by 39.2% against the United States dollar makimg it the sexond worst performing currency in Africa.
3. Malawian Kwacha (MWK)
The Malawian Kwacha joins the ranks with a 39.1% depreciation. Fueled by rising import costs and dwindling foreign direct investments, foreign exchange shortages proved decisive in the Kwacha’s downfall.
4. Zambian Kwacha (ZMW)
Zambia takes 4th place in this list of worst performing currencies in Africa. The Kwacha has depreciated against the USD by 29.5% since Jan 1, 2023. As a result of the depreciation, Zambia’s inflation rate leapt to its highest level in almost two years in December.
5. Burundi Franc (BIF)
Coming in fifth place is Burundi. The Burundi Franc has depreciated against the United States Dollar by 27.6% since the beginning of 2023. According to bloomberg, the only way to save Brundi Franc & its economy is to further devaluation.
6. Congolese Franc (CDF)
The Congolese franc lost about 24%of its value compared to the dollar since the beginning of the year, according to data compiled by Bloomberg.
The country’s currency devaluation is caused by conflict and economic mismanagement. The ongoing civil war in the eastern provinces disrupts vital export routes and saps resources, stifling economic growth and foreign exchange inflows.
7. Kenyan Shillings (KES)
The seventh worst performing currency in Africa is Kenya’s Shilling which depreciated by 20.9% against the United States dollar.
According to bloomberg, the East African nation currency posted its worst performance in 30 years as interest rates in major economies rose, offshore investors reduced their holdings and foreign-exchange inflows from exports declined.
Modified on September, 2024
