African Countries are Using a Variety of Strategies to Protect their Currencies

Authorities are isolating exchange rates to putting barriers on imports and immobilising foreign currencies, but in the long run, they are bound by market forces. “Currency is based on the law of supply and demand: there is no miracle cure,” says French economist Bruno Cabrillac. He says this against the backdrop of many African countries who are experiencing a drop in the value of their currencies and are trying to protect themselves. For the researcher at the Foundation for Studies and Research on International Development (FERDI), while it is “possible to create restrictions, there will always be a back door … Even in North Korea, there is a black market in currency”.

THE AFRICA REPORT