16/10/2024
JUST IN: 🇳🇬🇸🇸 The October 2024 edition of the Africa Pulse Report from the World Bank highlights the challenging performance of several currencies in Sub-Saharan Africa (SSA) this year. The report reveals that Ghana’s cedi, along with the currencies of South Sudan, Ethiopia, and Nigeria, rank among the poorest performers.
The cedi has depreciated by approximately 24% against the US dollar, positioning it as the fourth weakest currency in the region. South Sudan’s pound suffered a dramatic decline of over 60%, Ethiopia’s birr decreased by 51%, and Nigeria’s naira saw a depreciation of over 40%.
The report states, “Ethiopia, Ghana, and Nigeria are among the worst-performing countries in Africa this year, with their currencies continuing to weaken as demand for foreign exchange remains high.”
As of August 2024, the Ethiopian birr, Nigerian naira, and South Sudanese pound were among the region’s worst performers. The naira’s year-to-date depreciation reached about 43% by the end of August, mainly due to increased demand for US dollars in the unofficial market, limited dollar inflows, and slow foreign exchange allocations by Nigeria's central bank.
In contrast, the Kenyan shilling has been the best-performing currency in Africa this year, recording a year-to-date appreciation of about 21% by August 2024. Additionally, the South African rand and its pegged currencies have strengthened by 3.1% this year, showing signs of recovery after last year's losses.
The report also notes that more than one-third of the countries in SSA are expected to have less than three months of imports in international reserves by the end of 2024. While some currencies have rebounded from their 2023 depreciation, economic vulnerabilities persist across the region.
