Different senrere has make the global economy enter problem for previous years.
Because this start with Covid-19 in 2020 that almost stop international trade, and also the invasion of Ukraine by Russia cause the second one this year.
Because debt obligation has rise and goods prices was falling badly for the foreign exchange earning power for some of the countries.
And this problem fall for many African countries currencies against the US dollar.
Let’s looks the best African currency
Like this year, the Zambian kwacha has rise to become the best performing currency against dollar.
It gain 15% so far in 2022 and on Tuesday trading, they quote it as 15.93 to the dollar.
Because people that knows everything said that they gains it for the sake of President Hakainde Hichilema work to turn the economy around, most because he reorganise the country debt to be more sustainable.
On September, the southern African country make deal with the International Monetary Fund to give them bail-out fund that is worthy of $1.3bn (£1.15bn).
The amount will help them to maintain key social economic programmes like funding schools and hospitals as government they renegotiate their expensive that they owe China and others creditors.
And the move makes foreign investors to trust the copper producing nation.
And also make their inflation balanced for time where even the most developed economies in the world to face fast rising princes.
Zambia inflation has fall from 21% for last year October to 9.9% last month.
Let’s see the Worst African currency
In Ghana, the cedi has returned to the position of kwacha his before in 2015.
On Monday, it was ranked in world worst performing currency in the world, according to Bloomberg currency tracker that watches 148 currencies.
On afternoon Tuesday, the cedi was measure as 11.64 against the US dollar. This meant that the cedis has lose 48% for their value in 12 months.
#The cedi condition has become worse because foreign investors has lose their confidence for the country and they dump Ghanaian denominated bonds from their portfolio.
But according to the country Central Securities Depository, the amount of domestic government and corporate bonds that was hands by foreign investors has fall to 12.3% on August.
This has make Ghana, not able to collect cheap loans from the international debt markets, and they are still working on deal like the one Zambia make with IMF for $3bn in emergency funding.
Because of that, the cost of things in Ghana has rise over the past 16 months as inflation rise to 37.2% in September.
On Monday, traders for Accra was threaten to close their businesses for the second time in two months sake of how they handle the business to cost.
The Economist for John Hopkins University, Steve Hanke has name the five lowest performing African currencies:
- The Zimbabwean Dollar
- The Sudanese Pound
- The Sierra Leonean Leone
- The South Sudanese Pound
- The Ghanaian Cedi