The World Bank says naira lost 10.2 percent of its value in 2022.
According to the latest Africa’s Pulse report by the World Bank for April 2023, the Naira lost 10.2% of its value in 2022, making it one of the worst-performing currencies in the Sub-Saharan African region.
The report also highlights the depreciation of other currencies, including those of Sudan, Malawi, The Gambia, and Ghana, which lost 23.6%, 20.7%, 14.6%, and 40% of their value, respectively.
“Other currencies with significant losses last year include those of Sudan (23.6 per cent), Malawi (20.7 per cent), The Gambia (14.6 per cent), and Nigeria (10.2 per cent),” the bank said.
The global bank also attributes the inflationary pressures in the region to rising food and fuel prices and the depreciation of exchange rates.
The report also points out that high inflation rates and budget deficits continue to plague countries like Nigeria, Ghana, Malawi, Zambia, and Burundi.
“About half of Sub-Saharan African countries face both high inflation (low monetary policy space) and wider fiscal deficits (low fiscal policy space),” the bank added.
“Notable cases include Ghana, Nigeria, Malawi, Zambia, and Burundi, among others.”
