The Ethiopian birr has been listed among the top African currencies in Bloomberg’s 2022 “Worst Spot Returns,” ranking.
According to Bloomberg, the Ethiopian birr showed a decline in the value of birr the dollar by 2.97 between January 1, 2022, and February 25, 2022.
Among the African currencies, the Gambian dalasi spot returns year-to-date rates (-1.03%), New Sudanese pound (-1.88%), Ethiopian birr (-2.97%), Sierra Leone leone (-3.52%), Mauritian rupee (-4.76%), and Liberian dollar (-5.50%) to the worst of “Worst Spot Returns” of Ghana’s cedi against the dollar. Bloomberg showed a decline in the value of the cedi against the dollar by 8.86% between January 1, 2022, and February 25, 2022.
The Kwanza of Angola, the Namibian dollar, and the Rand of South Africa, on the other hand, are among the African currencies with the “Best Spot Returns.”
Spot Returns refers to the returns price of a security or commodity at which it sold for a period. A spot exchange rate is the current price level in the market to directly exchange one currency for another, for delivery on the earliest possible value date.
Generally, the spot rate is set by the forex market, but some countries actively set or influence spot exchange rates through mechanisms like a currency peg. Currency traders follow spot rates to identify trading opportunities not only in the spot market but also in futures, forwards, or options markets.
Source: Joy Business
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