Worst performing currencies of 2023 – Zimbabwe dollar is not the worst

Worst performing currencies of 2023 – Zimbabwe dollar is not the worst

  1. Congolese Franc

Price Against 1 USD on January 2, 2023: 2036 

Price Against 1 USD on September 15, 2023: 2466

Percentage Decline in Price in 2023: 21%

Congolese Franc is the official currency of the Democratic Republic of Congo. The currency has depreciated against the US dollar this year as the government amps up spending to fight the M23 rebel group. Salary arrears payments and rising inflation have contributed to this decline as well. The economy of the country is reliant on imports and this has also increased economic instability. Per the World Bank, the country is one of the poorest in the world, with about two-thirds of the population of 100 million living on less than $2.10 a day. 

  1. Egyptian Pound

Price Against 1 USD on January 2, 2023: 24 

Price Against 1 USD on September 15, 2023: 30

Percentage Decline in Price in 2023: 25%

The Egyptian Pound is the official currency of Egypt, the 14th-most populated country in the world, and the third-most populated in Africa. The annual urban inflation rates in the country have skyrocketed in recent months, touching 37.4% in August this year, up from 36.5% in the previous month. These figures remain significantly above the target range of the central bank and market expectations. In a country where a disproportionately large number of inhabitants live in urban areas, this inflation, coupled with macro pressures and a shortage of foreign currency, has resulted in a strong depreciation of the currency. 

  1. Pakistani Rupee

Price Against 1 USD on January 2, 2023: 226 

Price Against 1 USD on September 15, 2023: 296

Percentage Decline in Price in 2023: 31%

Pakistani Rupee is the official currency of Pakistan, a South Asian country that borders India and China. Persistent inflation, an import economy, and a large circular debt crisis are some of the reasons why the Rupee has faced strong headwinds in recent months. A debt restructuring plan by the government, which included going to the IMF for help, has also been on the radar of investors who want to put money into the Pakistani economy. The Rupee has been gaining against the US dollar in recent weeks but it is not clear whether these gains will translate to meaningful stability in the economic domain. 

  1. Russian Ruble

Price Against 1 USD on January 2, 2023: 71 

Price Against 1 USD on September 15, 2023: 96

Percentage Decline in Price in 2023: 35%

Russian Ruble is the official currency of Russia, the largest country in the world that has a huge geopolitical influence on Europe and Asia. The Russian invasion of Ukraine last year forced Western countries to impose tough sanctions on Russian imports. These sanctions even had an impact on top Russian exports such as energy and food, driving up global inflation numbers and contributing to a freefall in the value of the Ruble against the US dollar. These pressures remain intact this year, as Moscow deals with internal rebellions over the war. 

  1. Burundian Franc

Price Against 1 USD on January 2, 2023: 2070 

Price Against 1 USD on September 15, 2023: 2832

Percentage Decline in Price in 2023: 36%

Burundian Franc is the official currency of Burundi, a country in Africa that borders Rwanda. Burgeoning government debt, persistent inflation, and rising food prices have all contributed to a decline in the value of the local currency against the US dollar this year. Governmental policies to tackle economic instability, which include the issuing of new 5,000 and 10,000 Burundian franc banknotes, have not been met with the expected reaction, as shortages lead to mass protests and increased economic skepticism. 

Top firms like Mastercard Incorporated (NYSE:MA), PayPal Holdings, Inc. (NASDAQ:PYPL), and JPMorgan Chase & Co. (NYSE:JPM) have all warned investors of the unstable economic situation in Burundi. 

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