Five of the worst performing African currencies against the US dollar in 2023
Recent depreciations of African currencies, especially against the respected US dollar, have raised concerns about the economic stability of several African nations, impacting trade balances, inflation rates, and purchasing power.
Several African countries are heavily dependent on commodity exports, which has led to the depreciation of their currencies. Especially in countries like Nigeria and Angola, where commodities like oil or minerals make up a significant portion of their exports, this is evident.
Global commodity price volatility, influenced by geopolitical events, supply and demand dynamics, and other economic uncertainties, makes these nations more vulnerable to external shocks in this case.
Currency depreciation has also been exacerbated by economic mismanagement and structural weaknesses within certain African economies.
Nigeria, Kenya, and Zambia observed double-digit percentage declines in their currencies against the USD in 2023, according to Bloomberg.
The following are the worst performing African currencies against the US dollar in 2023:
| Rank | Currency | Depreciation percentage |
|---|---|---|
| 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 |
The good news is, Zimbabwe is NOT on this list.
