African currencies have lost ground against the US dollar this year, further driving inflation in the import-reliant region. On the one hand, with more than two-thirds of imports in the region priced in dollars, the region is highly sensitive to a strengthening dollar. On the other hand, with 60% of external debt in US dollars in Africa, declining currencies are making it more costly to service those loans. Depleting dollar reserves have left policymakers with limited options to arrest the decline.
Source : DW Africa
