The global economy is grappling with historic levels of inflation which in turn is putting enormous pressure on currencies. Low-income countries have been hit hard by these twin crises.
Ghana’s inflation rate hasn’t been this high for nearly a quarter century. The West African nation’s currency, the Cedi, lost more than half of its value in 2022. A similar situation is unfolding in Pakistan where the country is on the brink of a currency crisis. Meanwhile, Nigeria, Africa’s largest economy, is confronting double-digit inflation with the Naira, the nation’s currency, at historic levels of depreciation.
The African Development Bank said in its latest economic update for the continent that inflation hit double digits in 19 African countries. And the AfDB projects that currency struggles are set to persist for some of the larger economies on the continent.