The Nigerian Naira is one of the worst-performing currencies in Sub-Saharan Africa, according to the World Bank.
A report titled “Africa’s Pulse: An Analysis of issues shaping Africa’s economic future (October 2023 | Volume 28)” claims that the Naira has depreciated by 40% since the mid-June 2023 devaluation.
It was also mentioned that several African countries’ inflationary difficulties are being exacerbated by the parallel exchange market rates.
The report stated, in part,
“Among the worst performing currencies in the region so far this year are the Nigerian naira and the Angolan kwanza; both have posted year-to-date depreciation of nearly 40%.”
The devaluation of the naira began after the central bank lifted limitations on trading on the official market. The decline in oil prices and the increase in debt obligations forced the central bank to abandon its defense of the kwanza.
South Sudan (33%), Burundi (27%), the Democratic Republic of the Congo (18%), Kenya (16%), Zambia (12%), Ghana (12%), and Rwanda (11%) have saw their currencies decline significantly so far in 2023.