Naira, Angola’s Kwanza Worst Performing Currencies In Africa – World Bank

Posted by Nwa Diokpa Business News, Latest Headlines Saturday, October 7th, 2023

(AFRICAN EXAMINER) – The World Bank has stated that the naira and the kwanza of Angola as the “worst performing currencies” in Africa in 2023.

According to the financial organisation, both currencies have depreciated by nearly 40 percent.
The World Bank further disclosed that the decision by the Central Bank of Nigeria (CBN) to remove trading restrictions on the official market weakened the naira
It disclosed this in its Africa’s Pulse report — a bi-annual publication of the office of the chief economist in the World Bank Africa Region issued on Wednesday and according to the report, the Angolan Kwanza declined in value as the country’s central bank stopped defending the currency.
The African Pulse report state that Angola’s central bank took the initiative due to the low oil prices and greater debt payments.
“Other currencies with significant losses so far in 2023 are those of South Sudan (33 percent), Burundi (27 percent), the Democratic Republic of Congo (18 percent), Kenya (16 percent), Zambia (12 percent), Ghana (12 percent), and Rwanda (11 percent),” the report reads.
The World Bank further advised Nigeria and Ethiopia to stop the production of more money and also warned against providing untargeted subsidies and making foreign exchange distortions that contribute to a parallel premium.
“Central banks need to coordinate policy actions more tightly with the fiscal authorities to bring down inflation,” the bank said.
“Uncoordinated policy interventions — such as the monetary finding of fiscal deficits and the presence of foreign exchange controls — are also fueling inflation in some Sub-Saharan African countries (for instance, Ethiopia, Nigeria, and Zimbabwe),” the report reads.