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For many African countries, currency value decline is a recurring problem that reflects underlying economic weaknesses including excessive reliance on imports, high inflation, unstable political environments, and unmanageable debt levels.
Significant currency depreciation affected the economy of several African nations including, Ghana, and Nigeria in 2024, with repercussions seen throughout the African continent.
One of said economic erosions was the depreciation of purchasing power of local currencies. For instance, Nigeria’s inflation rate soared to 32.15% in 2024, significantly weakening the naira against major global currencies.
As local currencies decline against the US dollar, debt payment expenses rise. Countries with high dollar-denominated debt, such as Zambia, are more likely to default.
Furthermore, intra-African commerce loses since weaker currencies reduce export competitiveness, coupled with the fact that local production suffers, resulting in even more dependence on foreign goods.
DON’T MISS THIS: Top 10 African countries with the strongest currencies in February 2025
Foreign investors are cautious due to currency volatility. Infrastructure and company expansion depend on investment inflows, but sustained depreciation lowers returns in US dollars, making African markets less appealing.
Also, weaker currencies make it more difficult to accomplish the Sustainable Development Goals (SDGs) since they limit government spending on infrastructure, healthcare, and education.
While several African countries boast some of the world’s best-performing currencies it also has some of the worst, predominantly in nations struggling with economic instability.
With that said, here are the weakest currencies currently according to the Forbes currency converter, last updated on the 25th of March 2025.
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Top 10 African countries with the weakest currencies in March 2025 – Business Insider Africa
