Some African currencies have joined the celebration on the day on Monday when the British pound hit historic lows and were noted gaining progress against the pound. Richmond Frimpong, a Ghana-based economic analyst, told the BBC that “any country battling with their currency has imports in excess of their exports.” According to him, as a result of increased demand, foreign currency prices will rise.
In Asian markets on Monday morning, the pound temporarily dropped to an all-time low of $1.0382 against the US dollar. Against the pound, the Kenyan shilling increased by 0.15 percent. In a similar vein, the cedi, kwacha, pula, and CFA of West Africa all appreciated versus the pound.
Nevertheless, the South African rand and the Nigerian naira kept dropping value versus the major foreign currencies.This follows a year in which most African currencies lost value in comparison to the pound and the US dollar.
The worst-hit currency is Ghana’s cedi, which has lost about 40% of its value against the US dollar so far this year.In 2022, the cedi’s value against the pound has decreased by 20%. But it only slightly increased to quote at 10.83 units in the opening hours of Monday trading.
