<\/p>\n
The World Bank’s October 2024 Africa Pulse Report has revealed that the cedi and three other currencies are the worst-performing in Sub-Saharan Africa (SSA) in 2024.<\/p>\n
According to the report, the cedi has lost about 24% of its value against the US dollar, making it the fourth weakest currency in SSA. <\/p>\n
The three other currencies are South Sudan\u2019s pound (over 60% depreciation), Ethiopia’s birr (51%), and Nigeria\u2019s naira (over 40%).<\/p>\n
\u201cEthiopia, Ghana, and Nigeria are among the worst-performing countries in Africa this year, and their currencies continue weakening while demand for foreign exchange remains pressing,\u201d the report stated.<\/p>\n
It added, \u201cBy the end of August 2024, the Ethiopian birr, Nigerian naira, and South Sudanese pound were among the worst performers in the region. The Nigerian naira continued losing value, with a year-to-date depreciation of about 43% as of the end of August.”<\/p>\n
The report attributed the weakening of the naira to surges in demand for US dollars in the parallel market, driven by financial institutions, money managers, and non-financial end-users. This, combined with limited dollar inflows and slow foreign exchange disbursements to currency exchange bureaus by the central bank, exacerbated the naira’s depreciation.<\/p>\n
Conversely, the Kenyan shilling is the best-performing currency in Africa this year, with a year-to-date gain of about 21% as of August 2024.<\/p>\n
\u201cThe Kenyan shilling is the best-performing currency in Sub-Saharan Africa this year, appreciating by 21% year-to-date by the end of August 2024. The South African rand and currencies pegged to it have strengthened by 3.1% so far this year, after losing value last year.\u201d<\/p>\n
The report also noted that some currencies that weakened in 2023 have stabilized and gained strength in 2024.<\/p>\n
\u201cFrom a sample of 30 countries and two currency unions (the Economic and Monetary Community of Central Africa and WAEMU), more than one-third of the countries in the region are set to have less than three months of imports in international reserves by the end of 2024,\u201d the report added.<\/p>\n
SSD\/KA<\/p>\n
Watch the latest edition of BizTech below:<\/b><\/p>\n