Top 6 Countries With Lowest Currency in Africa – Low currency, in the context of this article, refers to a situation where a country’s currency is of lower value compared to other currencies. This means that the exchange rate of such a currency against other currencies is low, making it difficult for the country’s citizens to afford goods and services that are priced in foreign currencies.
In Africa, there are several countries with low currencies, and in this article, we will discuss the Top 6 Countries With Lowest Currency in Africa. These countries are Zimbabwe, Sao Tome & Principe Dobra, Sudan, South Sudan, Nigeria, and Ghana.
Top 6 Countries With Lowest Currency in Africa
1. Zimbabwe
Zimbabwe is a Southern African country that has been experiencing a currency crisis since the early 2000s. The country’s official currency is the Zimbabwean dollar, but due to hyperinflation, the currency has lost its value, and the government had to abandon it in 2009. The hyperinflation was caused by a combination of factors, including the government’s printing of money to finance its spending, the collapse of the agricultural sector, and economic sanctions imposed by the Western countries.
Since 2009, Zimbabwe has been using a multi-currency system, where the US dollar became the primary currency, and other foreign currencies such as the South African rand and the British pound were also allowed.
However, in 2019, the government introduced a new currency, the Zimbabwean dollar, to replace the multi-currency system. The new currency has also been experiencing depreciation, and the exchange rate against other currencies is low.
2. Sao Tome & Principe Dobra
Sao Tome & Principe is a small island country located in the Gulf of Guinea, off the western coast of Central Africa. The country’s official currency is the Sao Tome & Principe Dobra, which has been experiencing depreciation since the early 2000s. The currency crisis in the country has been caused by a combination of factors, including political instability, corruption, and poor economic policies.
The government of Sao Tome & Principe has been struggling to manage the currency crisis, and the country has been relying on foreign aid to finance its budget. The high level of inflation and low value of the currency have made it difficult for the citizens to afford basic goods and services.
3. Sudan
Sudan is a North African country that has been experiencing a currency crisis since the early 2000s. The country’s official currency is the Sudanese pound, which has been experiencing depreciation due to a combination of factors, including economic sanctions, political instability, and the loss of oil revenues.
The Sudanese government has been printing money to finance its spending, leading to inflation and the depreciation of the currency. The high level of inflation has made it difficult for the citizens to afford basic goods and services, and the low value of the currency has made it difficult for the country to attract foreign investment.
4. South Sudan
South Sudan is a country located in East-Central Africa that became independent from Sudan in 2011. The country’s official currency is the South Sudanese pound, which has been experiencing depreciation since the early 2010s. The currency crisis in the country has been caused by a combination of factors, including the civil war that started in 2013, the drop in oil prices, and the loss of oil revenues due to the conflict.
The South Sudanese government has been printing money to finance its spending, leading to inflation and the depreciation of the currency. The high level of inflation has made it difficult for the citizens to afford basic goods and services, and the low value of the currency has made it difficult for the country to attract foreign investment.
5. Nigeria
Nigeria is a West African country that has been experiencing a currency crisis since the early 2010s. The country’s official currency is the Nigerian naira, which has been experiencing depreciation due to a combination of factors, including the drop in oil prices, corruption, and political instability.
The Nigerian government has been struggling to manage the currency crisis, and the country has been relying on foreign aid and loans to finance its budget. The high level of inflation and low value of the currency have made it difficult for the citizens to afford basic goods and services, and the country has been facing challenges in attracting foreign investment.
6. Ghana
Ghana is a West African country that has been experiencing a currency crisis since the early 2010s. The country’s official currency is the Ghanaian cedi, which has been experiencing depreciation due to a combination of factors, including high public debt, political instability, and a large trade deficit.
The Ghanaian government has been struggling to manage the currency crisis, and the country has been relying on foreign aid and loans to finance its budget. The high level of inflation and low value of the currency have made it difficult for the citizens to afford basic goods and services, and the country has been facing challenges in attracting foreign investment.
Conclusion
The countries discussed in this article have been experiencing currency crises that have led to the depreciation of their currencies. The causes of these crises are varied, including factors such as hyperinflation, political instability, corruption, and the drop in oil prices.
The low value of these currencies has made it difficult for the citizens to afford basic goods and services, and the countries have been facing challenges in attracting foreign investment.
To address these challenges, the governments of these countries need to implement sound economic policies that promote fiscal discipline, attract foreign investment, and encourage economic growth. They also need to address the root causes of the currency crises, such as corruption and political instability, to restore confidence in their currencies.