The Nigerian naira is one of the worst-performing currencies in Sub-Saharan Africa in 2024, according to the World Bank’s recent Africa’s Pulse report. By August 2024, the naira had lost about 43% of its value since the beginning of the year, making it one of the weakest currencies in the region, along with the Ethiopian birr and South Sudanese pound.
The report points out several reasons for the naira’s drop, such as a high demand for US dollars in the unofficial market, a shortage of dollars coming into the country, and delays in getting foreign currency from the Central Bank of Nigeria (CBN). The World Bank also mentioned that the increased need for dollars by banks, businesses, and investors has put more pressure on the naira.
This year, Ethiopia, Ghana, and Nigeria have some of the weakest currencies in Africa. Their money keeps losing value, and there’s still a big need for foreign exchange. In Angola and Nigeria, trying to stop people from getting upset about high living costs is making it hard for the government to manage its money.
The Angolan kwanza, Malawian kwacha, Nigerian naira, South Sudanese pound, and Zambian kwacha are the currencies that have done the worst in the area. Many African countries are still worried about not having enough foreign money.
On the other hand, some African currencies, like the Kenyan shilling and South African rand, which had problems in 2023, are starting to get better in 2024. The Kenyan shilling got 21% stronger from the start of the year until the end of August, making it one of the best performers in the region.
Even though the Nigerian government made changes to its foreign money market in June 2023, like making the official exchange rate more flexible, these changes haven’t fixed the problem yet.
