A report on 15 Africa top performing currencies so far from January 2022 has been announced.
According to the report put out by Data Bank, the South African Rand is the top performing currency at the moment with 4.56% followed by Namibian Dollar of 4.49%.
Ghana cedi is ranked 2nd worst currency in Africa as it continues to depreciate by 4.70% to the US dollar according to the data. This simply means that, Ghana cedis is ranked 14th performing currencies among 15 currencies in the report.
The report stated that the Zambian kwacha which was one of the top-performing currencies in Africa in 2021, is the worst so far in 2022. It has declined in value by 11.29% to the dollar.
Find below Africa’s top performing currencies from January to date.
|South African Rand||4.56%||1st|
|Cote D’ Voire Cfa||0.00%||6th|
What does this mean for countries with worst performing currencies?
Financial experts believe that, countries with worst performing currencies should expect the following;
1. reduction in foreign direct investment.
2. Massive capital flight
3. Increase inflation
4. Reduced economic growth
5. Reduced GDP (gross domestic product)
6. Increase graduate unemployment
7. Reduction in government’s expenditure on infrastructure projects
8. Unstable prices of commodities making it difficult for any meaningful planning
9. Reduction in trade volumes
10. Increase hardship in countries coupled with increasing crime rate etc.