Kenya’s Shillings reached a new low against the US $ yesterday when it traded S150 to the US $. It is symptomatic of the heavy depreciation most African currencies have experienced in the last year. The South Africa Rand depreciated against the US $ from January 2023 to reach a new low of R19.8 to $ May 25, now trading at R18.94. Ghana Cedis GHc, following debt default became one of the weakest currencies in the world, losing over 45% in 2022 but slightly recovered since. Sierra Leone was in the same phase. Nigeria this year have been hit the most, first devaluing by about 40% and depreciating by over 30% since June 2023. Most of the reasons Africa currencies are doing badly are exogenous. Started with Covid – 19 but exacerbated by the Russian / Ukraine war and the global market and economic uncertainty that followed. It was now compounded by the rise in interest rates in the US since early last year and the recent rise in US treasury yields.
