Naira among seven worst-performing currencies in Africa in 2022

Steve Hanke, a Professor of Applied Economics and Director of the Troubled Currencies Project in the US, publishes weekly currency watchlists that have depreciated at least by 20 per cent to the dollar.

Hanke disclosed that the currencies of the countries on his watchlist had suffered huge devaluations against the US dollar in the last two years.

Business Insider reported that his watchlist shows the scale of inflation rates and currency devaluation of countries.

Here are the top worst-performing currencies

Zimbabwean dollar

Hanke’s ranking says that the Zimbabwe currency has been rated the worst-performing in Africa against the US dollar.

It has fallen by 97.33 per cent since January 2020.

Hanke advised that Zimbabwe dumps their currency and adopts the US dollar immediately.

Sudanese pound

In second place is the Sudanese pound which has depreciated against the dollar by 84.95 per since 2020.

Hanke advised the Sudanese government to install a currency board.

The Sudanese Pound

The South Sudanese pound has lost about 50.79 per cent of its value in the last two years.

Naira

Nigeria’s currency ranks fourth on the list and 11th in the world. The naira has lost 48.87 per cent in the last two years.

According to Bloomberg, the Nigeria currency is among the worst-performing in the world among 148 currencies tracked by the website.

Bloomberg stated that the naira is doing well, having depreciated against the dollar by 4 per cent and against major currencies of the world.


Ghana cedis

Hanke ranks the Ghanaian currency 5th worst-performing in Africa, having depreciated by 42.57 per cent against the dollar in the last two years.

Malawian kwacha

Once the best-performing currency in Africa, the Kwacha is now the worst-performing on the continent and has depreciated against the US dollar by 39.54 per cent since January 2020.

Leone

Sierra Leon’s Leone is the 7th worst currency in Africa. It has depreciated by 31.23 per cent since January 2020.