10 Weakest Currency in Africa 2023
As of 2023, Africa continues to experience economic struggles, with some of its countries having weaker currencies compared to others.
In this blog post, we will be discussing the top 10 weakest currencies in Africa in 2023.
1. Zimbabwean Dollar (ZWL)
With an inflation rate of over 1000%, the Zimbabwean dollar is currently the weakest currency in Africa.
The country has been struggling economically for years, and its currency has taken a significant hit.
2. South Sudanese Pound (SSP)
The South Sudanese pound has been unstable since its introduction in 2011.
The country has been plagued by civil war and economic turmoil, leading to a devaluation of its currency.
3. Sierra Leonean Leone (SLL)
Sierra Leonean Leone has struggled with high inflation rates, causing a devaluation of the currency.
The country has also been hit hard by the Ebola crisis, which negatively impacted its economy.
4. Liberian Dollar (LRD)
The Liberian dollar has been affected by a decline in commodity prices and political instability.
The country has also suffered from the Ebola outbreak, which led to a decrease in economic activity.
5. Tanzanian Shilling (TZS)
Tanzania has faced significant economic challenges due to the COVID-19 pandemic.
The devaluation of the shilling has been caused by a decrease in tourism and a drop in global demand for its exports.
6. Ethiopian Birr (ETB)
Ethiopia’s economy has been hit by the COVID-19 pandemic, causing a decline in foreign exchange earnings.
The country also faces political instability, leading to a devaluation of its currency.
7. Malagasy Ariary (MGA)
Madagascar has been impacted by the COVID-19 pandemic, leading to a decline in tourism and a decrease in foreign exchange earnings.
This has caused a devaluation of the Malagasy Ariary.
8. Ugandan Shilling (UGX)
Uganda’s economy has been affected by the COVID-19 pandemic, leading to a decline in foreign exchange earnings.
The country also faces political instability, leading to a devaluation of its currency.
9. Burundian Franc (BIF)
Burundi’s economy has been impacted by political instability, causing a decline in foreign exchange earnings.
This has led to a devaluation of the Burundian franc.
10. Central African CFA Franc (XAF)
The Central African CFA franc is used in six countries in Central Africa, and its value is pegged to the Euro.
However, the COVID-19 pandemic has negatively impacted the economies of these countries, leading to a devaluation of the currency.
Conclusion
In conclusion, these are the top 10 weakest currencies in Africa as of 2023. The causes of their devaluation vary from political instability to economic struggles and the impact of the COVID-19 pandemic.
It is essential to note that while these currencies are weak, it does not mean that the countries they belong to are not worth investing in.
Investors should conduct thorough research and consult with financial experts before making any investment decisions.
