INSUBCONTINENT EXCLUSIVE:
The International Monetary Fund (IMF) warns of ongoing currency weakness in African economies, expected to persist until Q3 2024.This comes
as the US Federal Reserve eyes a peak interest rate of around 5.4%, set to pressure struggling African currencies further.Since 2022,
significant economies, including the EU, UK, and US, have seen interest rates rise by at least four percentage points, impacting African
nations dependent on imports and borrowing.The falling value of currencies like the Kenyan shilling, which has significantly depreciated
against the US dollar since 2020, escalates import costs.This inflation spikes living costs within these countries
Currency Struggles and Economic Outlook
fall.Sub-Saharan Africa faces inflationary pressures due to its reliance on imported goods, mostly priced in US dollars.A 1% depreciation
against the dollar can increase inflation by 0.22 percentage points within a year.This depreciation also raises public debt levels, with
sustained intervention against ongoing challenges.Some countries have also resorted to measures like foreign exchange rationing, which can
view for sub-Saharan Africa, forecasting growth to rebound to 4% in 2024.Efforts to address macroeconomic imbalances, such as reducing
fiscal deficits, are contributing to stabilizing public debt despite global challenges.This growth, however, emphasizes the need for reforms
to foster economic prosperity, reduce poverty, and create jobs.In summary, Africa faces currency depreciation, inflation challenges, but
anticipates recovery through strategic reforms and macroeconomic stabilization for future growth.
