Naira Gets New Position as Data Shows Worst-Performing African Currencies in 2024
- The Nigerian currency emerged as one of the worst-performing African currencies in 2024
- The naira weakened by 40% in 2024, trading above the N1,600 for most of last year, affecting living standards
- Data shows that the other African currencies experienced a massive decline in the outgone year
Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.
Recent data shows the Nigerian naira was among the list of 15 worst-performing currencies in Africa in 2024.
The Nigerian currency closed 2024 negatively, depreciating by over 40% despite a series of innovative policies by the Central Bank of Nigeria (CBN) to prop up the naira’s value.
Source: Getty Images
The naira gains slightly at the close of December
Data from the FMDQ Exchange shows that the naira gained slightly on Tuesday, December 31, 2024, rising by 0.02% in the Electronic Foreign Exchange Market System (EFEMS).
The naira opened trading negatively at N1,544.83 against the dollar and closed at N1,538.25 per dollar, representing a 0.02%.
Traders at the EFEMS quoted the dollar at a high of N1,547.32 per dollar and a low of N147.32.
African currencies experience depreciation
Meanwhile, other African currencies faced persistent trade imbalance, resulting in massive depreciation in the outgone year.
Also, high inflation, political instability, and declining reserves led to currency depreciation on the continent.
The continent’s currencies also faced high debt levels and geopolitical tensions, which affected foreign direct investments (FDI) in those countries.
Exchange rates significantly impact a country’s inflation and the citizen’s purchasing power.
A sharp decline can drive inflation through the roof by raising the cost of imported products, placing additional strain on consumers and the economy.
Worst-performing African currencies
According to reports, as of August 1, 2023, Sierra Leone’s currency, the Leone, had the highest exchange rate, with one US dollar trading at 21,021.7 leones, making it the continent’s weakest currency.
Guinea’s Franc came second with 8.521 to a dollar, and Malagasy Ariary traded at 4,430.
Other currencies include the naira, which traded for most of 2024 at N1,600 to a dollar, the Angolan kwanza at 599, Sudanese pounds at 185, the Liberian dollar traded at 4.77, the Libyan dinar at 11 to a dollar, the Ghanaian cedi and the Egyptian pound also depreciated massively.
- Naira: Nigeria
- Kwacha: Malawi
- Franc: Congo
- Kwanza: Angola
- Leone: Sierra Leone
- Ariary: Madagascar
- Franc: Burundi
- Franc: Comoros
- Shilling: Uganda
- Franc: Guinea
- Shilling: Somalia
- Sudan: Pounds
- Dollars: Liberia
- Tanzania: Shilling
Experts predict new exchange for the naira in 2025
Legit.ng earlier reported that as volatility continues, the Nigerian naira is expected to depreciate to a fair value of N1,804.45 in 225.
The forecast is based on a new report by Afrinvest, a Lagos-based investment firm.
The company disclosed that while gross FX reserves have increased above $40 billion, it expects FX rate volatility to continue at a moderate pace.
Proofread by Kola Muhammed, journalist and copyeditor at Legit.ng
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