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The Sierra Leone legal tender, Leones now rank as the fifth most depreciated currency according to Hanke’s currency watchlist.
The data computed by Steve H. Hanke, The Johns Hopkins University says that the Leones depreciated by -53.41 percent as against the US Dollar since 1 January 2022.
The Zimbabwean Dollar is ranked as the most depreciated currency in the world with a devaluation of -87.50 percent as against the US Dollar. The Venezuelan Bolivar, Lebanese Pound and Cuban Peso all depreciated more than the Sierra Leonean Leones relative to the US Dollar.
Other African currencies that continue to plummet as against the US Dollar include the Egyptian Pound, South Sudanese Pound, Ghanaian Cedi, Malawian Kwacha, Nigerian Naira and South Sudanese Pound.
The Sierra Leone Central Bank acknowledged months ago the underperformance of their legal tender. The Bank Governor at the time, Professor Kabineh Kallon instituted several measures to halt the currency’s devaluation but to no effect.
The West African nation is also facing inflation as prices for basic commodities continue to soar in the local market.
The Acting Bank Governor, Stevens said earlier in April that inflation in the country is being fueled by several foreign dynamics like the war in Ukraine.
Quite recently, the country witnessed a soar in the prices of flour prompting price hike for the nation’s second staple food, bread.
Sierra Leone will go to the polls on 24 June this year in a multi-tier election. Experts believe that a good number of voters would prioritise the economy over other issues when voting.
