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.

The forecast for the next three years is seven per cent but that may be hard to reach with copper prices near 4-1/2 year lows on mounting worries about growth in China, not to mention brewing rows with mining companies over tax issues.

Finance Minister, Alexander Chikwanda said the government intended to resolve the issue of the VAT refunds with mining companies and hoped to agree with them on new mining taxes.

He also said the government remained committed to a new mining tax regime that comes into effect on Thursday, which the industry say it can ill afford.

“Investors want to invest in a country whose economy is growing so obviously the lower forecast is bad for the kwacha. Investors are also watching how the elections go,” an analyst with the Zambia’s Copperbelt University, Lubinda Habazoka,said.

Zambia is also witholding $600m in VAT refunds owed to mining companies and will only repay the cash when companies produce import certificates from destination countries. They say this is impossible because of middlemen in the trade.

The country is due to hold a presidential election on January 20 following the death in October of its leader Michael Sata, and it is unlikely that the tax issue will be resolved before a new administration comes to power.

http://www.punchng.com/business/naira-cedi-kwacha-worst-african-currencies-in-2014/

what about the Top 3?

Blame it on the corrupt Government of GEJ

and Make I see person way go come say

APC should be blamed for this

This is what the pdp government should be more concern with, instead they have left what they masses voted them to do and are now focus on tarnishing the image of buhari with every lie they can think of...


Pdp give us reasons why we should vote for you again and quit the silly lies and propaganda you have been feeding Nigerians with for the past decade.

Thanks to the transformation agenda of mr President!

Shame on the PDP-led FG, the nosedive started since 1999.

Maybe more of the reasons we need change at the centre. We can't continue like this, the future looks too bleak!

It will perform worse in 2015 except we change the Otuoke man. He has an agenda to bankrupt Nigeria.

If you shout GEJ till 2019 or even till infinity, it doesn't change the fact that you equally live in the same country and you likely more affected by his dumbness and cluelessness.

Fabdedon:
what about the Top 3?

The top 3 performing African currencies are
Botswanan pula
Typing....

When Jonathan said he will build refineries I knew he was lying, we are importing our own petrol, we pay for marketers who milk the economy, if we have good refineries stop importation of petrol naira will gain ground once more, but Allison Madueke said not until another 20yrs. That's bad.

Am sure Taniods will blame the publication on APC soon



That APC have bought the media house to print this exposure.

I have never seen them admitting any fault but blame the opposition party.

This what we get when we decided to vote someone that says
°°Stealing is never corruption
°°Someone that just woke up from slumber after 6years wanting to fight corruption now when its time for him to go back to his fishing business

Yet GEJ is more concerned with changing the look of our #100 note without giving attention to the value of the money (the thing even resemble old #5 note) and how he would win his second term not giving any attention to the country he wants to rule at all cost. While PDP would do anything to tarnish the image of Buhari. There is God!

when the government is obsessed with the opposition and desperately trying to tarnish their image, by maligning and slandering them, how will they be privy to the realistic situation of things. i believe that the devaluation of the naira was a knee jerk reaction to the plummeting oil prices and not the product of a well thought out plan cos, there was no strategy to mitigate the effects of the devaluation on the economy, and the populace who are bearing the brunt of the spontaneous devualation of the currency

Some years are like that,hoping for a better 2015.