The World Bank Says the Shilling is the Best-Performing Currency in Sub-Saharan Africa

 According to a World Bank report, the Shilling is the best-performing currency in Sub-Saharan Africa.

According to its Africa Pulse Report released in April 2024, the Kenyan currency appreciated 16 percent this year.

As a result of recent monetary policies implemented by the Central Bank of Kenya (CBK), the Shilling has appreciated due to increased demand for the local currency.

Furthermore, Kenya's participation in the Eurobond market in February also contributed to the Shilling's gains against the Dollar.

Kenyan shillings have seen a 16 percent appreciation so far this year, making them the best-performing currency in the subcontinent. The Zambian kwacha has lost some ground since mid-February after strengthening by 14 percent. As of mid-March, the kwacha has appreciated by 2.4%.

In both cases, the monetary authority raised interest rates to defend their currencies. The Bank of Zambia also raised reserve ratios for commercial banks. "The report reads in part that Kenya's Eurobond repayments restored confidence and increased the demand for local currency after securing funds to repay them in June 2024," it said.

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Furthermore, the report revealed that other currencies were also depreciating due to factors such as lack of foreign reserves and ballooning debt.

Nigerian currency has depreciated significantly among countries with depreciating currencies.

As of mid-March, the Nigerian Naira has depreciated about 41 percent on the official market this year.

As foreign investments into the country and its crude oil export receipts have declined, the Naira has weakened as a result of accumulated foreign exchange demand on the official market.