Nigeria’s Naira, Kenyan Shilling worst hit of Africa’s devaluing currencies in 2023 with no hope in sight

African countries have faced a myriad of challenges in 2023, not the least of which was currency devaluation, with Nigeria’s Naira and Kenyan Shilling experiencing their largest drop in value against the greenback in 24 and 30 years respectively.
While Nigeria and Kenya recorded significant growth across numerous industries, there were still instances of socio-economic drawbacks, most notably currency devaluation — in the case of Naira, the Nigerian currency plunged by a whooping 55% against the US dollar. But after both currencies suffered their worst currency hits in decades, there is still no hope in sight due to common factors, such as, policy changes, the removal of fuel subsidies, rising interest rates and reduced foreign exchange inflows. But according to a new business publication by Bloomberg, beyond economic instability, African nations struggling with underperforming currencies confront a multitude of other challenges.
As Business Day, a chart by Bloomberg, illustrates, out of the world’s 10 worst-performing currencies of 2023, 7 were African. This shows that while some African nations managed to maintain the integrity of their currencies, a few African nations struggled. More specifically, the Bloomberg report attributes the Naira’s steep fall to the country’s new administration’s decision to float the currency, while also removing fuel subsidies which drove inflation to new highs, and by extension devalued the country’s currency. Similar to Nigeria, Kenya’s policies, such as the removal of fuel subsidies and the increase of taxes, contributed to the Shilling’s fall and economic challenges faced in the East African country.