Naira, cedi, kwacha worst African currencies in 2014

Reports say Nigeria’s naira, Ghana’s cedi and Zambia’s kwacha have been named the worst performing African currencies in 2014.

The currencies were among a small basket that are relatively liquid, as falling commodity prices take a toll on some of the continent’s “lion” economies, according to a Reuters report.

The naira shed about 13.5 per cent last year, while South Africa’s rand fell over 10 per cent while the Kenyan and Ugandan shillings yielded about 4.5 and nine per cent respectively

On November 25, the Central Bank of Nigeria devalued the midpoint of the naira by eight per cent from 155 to 168.

The CBN blamed the naira slide on falling oil prices and speculations by currency dealers.

The cedi lost about 27 per cent in 2014, one sign of a fiscal crisis in an economy that grew strongly in previous years on gold, cocoa and oil exports. Economic growth in 2015 is seen slowing to 3.9 per cent in from an estimated 6.9 per cent last year.

The cedi slumped around 40 per cent earlier last year but a Eurobond issue, cocoa loan inflows and talks with the International Monetary Fund on a financial assistance programme helped it re-coup some losses.

Zambia’s kwacha is ended the year on the backfoot amid tax rows with mining houses, a lower growth forecast and a looming election.

Commercial banks quoted the currency of Africa’s second-largest copper producer at 6.3750 per dollar, bringing its losses over the past three weeks to three per cent and those for the year to around 15 per cent.

Zambia on Tuesday cut its 2014 growth forecast to six per cent – still brisk by global standards – from a targeted 6.5 per cent, citing operational challenges at some mines.