African currencies have been taking a heavy hit lately, especially against the revered US dollar. The depreciation has raised concerns about the economic stability of several African nations, impacting trade balances, inflation rates, and the purchasing power of their citizens.
In many African countries, the depreciation of their currencies can be largely attributed to their heavy dependence on commodity exports. This is particularly evident in countries like Nigeria and Angola, where commodities such as oil or minerals constitute a large portion of their export activities.
In this case, the volatility in global commodity prices, influenced by factors like geopolitical events, supply and demand dynamics, and other economic uncertainties, exposes these nations to heightened vulnerability against external shocks.
Moreover, economic mismanagement and structural weaknesses within certain African economies have exacerbated currency depreciation.
Several African countries like Nigeria, Kenya, and Zambia observed double-digit percentage weakening of their currencies against the USD in 2023, according to Bloomberg.
Below are the worst performing African currencies against the US dollar in 2023:
| 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 |
| 6 | Congolese franc | -24.0 |
| 7 | Kenyan shilling | -20.9 |
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