Naira and Three Other African Currencies That Flopped Badly in 2022

Naira and Three Other African Currencies That Flopped Badly in 2022

  • Some countries in Africa have witnessed a strong dip in their currencies in 2022, which has set off serious inflation
  • The Nigerian currency leads the pack of other two currencies in Africa and has witnessed its biggest fall in July
  • The Ghana Cedi was described as the worst-performing in the world after it fell to a historic four-year fall

On Thursday, August 25, 2022, the Nigerian Currency, the naira fell again to the dollar, information from many black market traders revealed.

It fell to N698 per dollar, sparking fears that it may slide back to its historic fall witnessed in July this year, according to Nairametrics.

Naira, Cedi, Shilling, Africa
Worst-performing currencies in Africa Credit: ppart
Source: Getty Images

Naira's biggest fall

It also dipped against the dollar on Wednesday, August 24, 2022, to N696, representing 0.29 depreciation as forex traders lament scarcity. The fall of the naira has been blamed on increased dollar demand.

Read also

Grain prices ease back but fertiliser costs a growing risk

PAY ATTENTION: Subscribe to Digital Talk newsletter to receive must-know business stories and succeed BIG!

The fall of the Nigerian Currency set the pace for the fatal crashes of the other top two currencies in Africa.

Panic sets in as Ghana Cedi takes a big fall

In a Bloomberg report, the Ghana Cedi witnessed its biggest crash since 2019 on August 17, 2022, which prompted the country's Central Bank to summon an emergency meeting to deliberate on borrowing costs.

The Cedi dropped 1.1 per cent, extending its fall last week to 5.2 per cent and was the worst decline since the seven-day period, which ended on March 29, 2019.

According to Bloomberg, the Currency has dipped 35 per cent since the beginning of this year, making it the worst-performing Currency in the world after Sri Lanka's rupee among the 150 economies.

Kenyan Shillings dip to a historic low

Read also

Asian markets rise with eyes on China, Fed speech

The Kenyan Shilling plunged to a new historic low on Thursday, August 25, 2022, and hovered towards 119.85 units to the dollar amid controversies surrounding William Ruto's victory in the Kenyan elections on August 9, 2022.

According to Business Insiders, analysts say that Shilling is feeling the impact of global inflation.

The depreciation will push the household cost of living as importers make consumers pay for the hiked bill.

Businesses relying on export markets would also be affected heavily.

Naira records biggest fall to US dollar at official market history, despite Nigeria’s rising foreign reserves reported that the Nigerian currency has dropped to its biggest low to the US dollar in the last seven months at the official market, and it could get worst in the coming months.

FMDQ securities data shows that at the official market, Naira on Tuesday closed at N430 which is a N4.25 or 0.99 percent devaluation from N425.75 posted in the previous market session on Monday.

The last time Naira exchange at N430 or above was Thursday, 30th December 2021, at the official market.


Online view pixel