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Financial crisis: African currencies are undergoing a historic devaluation against the dollar

17/04/2024
Source : ORISHAS-FINANCE
Categories: Economy/Forex

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Africa's economic stability is under threat due to a historic devaluation of the continent's currencies against the American dollar.

In Nigeria, the naira lost more than half of its value in one year, fueling inflation and threatening the economy. In reality, the surge in prices, the collapse of investments and the uncertainty around the future ECOWAS currency are worsening the situation. Also, the Covid-19 crisis and the war in Ukraine have disrupted supply chains in Africa and caused global inflation.

Les entreprises telles que MTN, Nestlé , Nigerian Breweries, multinationals are suffering historic budget cuts due to exchange rate losses. Some, like GSK and P&G style="font-family: "Bookman Old Style”, "serif">, have even left the continent. Noted that currency depreciation fuels inflation, eroding people's purchasing power and worsening

poverty.
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