As of August 1, 2023, one U.S. dollar could buy 21,021.7 Sierra Leonean leones (SLL), the highest exchange rate among the African currencies. Furthermore, one U.S. dollar corresponded to 758.9 Nigerian naira (NGN), 30.85 Egyptian pounds (EGP), 18.03 South African rand (ZAR), and 9.86 Moroccan dirhams (MAD) as of the same date.

Exchange rates and inflation: a case study of West African countries

Exchange rates can affect a country's inflation rate and the purchasing power of its currency. If a country's currency depreciates significantly, it can lead to higher inflation as the cost of imported goods and services increases. Indeed, the inflation rate in Sierra Leone increased steeply over the past two years. The IMF further estimates that inflation will continue to rise before falling again. This high inflation and other factors also led to the depreciation of the SLL. Furthermore, a regional perspective showed that Nigeria and Liberia faced similar high inflation rates.

Businesses' strategies for tackling inflation

Unfavorable exchange rates negatively impact countries' economies. It does this in various ways, including limiting businesses' ability to grow. Issues such as inflation affect purchasing power and businesses' investment decisions. In 2023, a survey revealed that a substantial number of micro, small, and medium enterprises (MSMEs) employed various measures to offset the impact of inflation. Approximately 36 percent of these businesses tapped into their personal savings to bolster their operations, while another 32 percent opted to scale down their business activities.

Nigeria NG: GNI per Capita: PPP: 2017 Price data was reported at 5,006.286 Intl $ in 2017. Nigeria NG: GNI per Capita: PPP: 2017 Price data is updated yearly, averaging 5,006.286 Intl $ from Dec 2017 (Median) to 2017, with 1 observations. The data reached an all-time high of 5,006.286 Intl $ in 2017 and a record low of 5,006.286 Intl $ in 2017. Nigeria NG: GNI per Capita: PPP: 2017 Price data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s Nigeria – Table NG.World Bank.WDI: Gross Domestic Product: Purchasing Power Parity. GNI per capita based on purchasing power parity (PPP). PPP GNI is gross national income (GNI) converted to international dollars using purchasing power parity rates. An international dollar has the same purchasing power over GNI as a U.S. dollar has in the United States. GNI is the sum of value added by all resident producers plus any product taxes (less subsidies) not included in the valuation of output plus net receipts of primary income (compensation of employees and property income) from abroad. Data are in constant 2017 international dollars.;International Comparison Program, World Bank | World Development Indicators database, World Bank | Eurostat-OECD PPP Programme.;Weighted average;

Nigeria GNI per Capita: PPP: 2021 Price data was reported at 5,384.778 Intl $ in 2021. Nigeria GNI per Capita: PPP: 2021 Price data is updated yearly, averaging 5,384.778 Intl $ from Dec 2021 (Median) to 2021, with 1 observations. The data reached an all-time high of 5,384.778 Intl $ in 2021 and a record low of 5,384.778 Intl $ in 2021. Nigeria GNI per Capita: PPP: 2021 Price data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s Nigeria – Table NG.World Bank.WDI: Gross Domestic Product: Purchasing Power Parity. GNI per capita based on purchasing power parity (PPP). PPP GNI is gross national income (GNI) converted to international dollars using purchasing power parity rates. An international dollar has the same purchasing power over GNI as a U.S. dollar has in the United States. GNI is the sum of value added by all resident producers plus any product taxes (less subsidies) not included in the valuation of output plus net receipts of primary income (compensation of employees and property income) from abroad. Data are in constant 2021 international dollars.;International Comparison Program, World Bank | World Development Indicators database, World Bank | Eurostat-OECD PPP Programme.;Weighted average;

At **** U.S. dollars, Switzerland has the most expensive Big Macs in the world, according to the January 2025 Big Mac index. Concurrently, the cost of a Big Mac was **** dollars in the U.S., and **** U.S. dollars in the Euro area. What is the Big Mac index? The Big Mac index, published by The Economist, is a novel way of measuring whether the market exchange rates for different countries’ currencies are overvalued or undervalued. It does this by measuring each currency against a common standard – the Big Mac hamburger sold by McDonald’s restaurants all over the world. Twice a year the Economist converts the average national price of a Big Mac into U.S. dollars using the exchange rate at that point in time. As a Big Mac is a completely standardized product across the world, the argument goes that it should have the same relative cost in every country. Differences in the cost of a Big Mac expressed as U.S. dollars therefore reflect differences in the purchasing power of each currency. Is the Big Mac index a good measure of purchasing power parity? Purchasing power parity (PPP) is the idea that items should cost the same in different countries, based on the exchange rate at that time. This relationship does not hold in practice. Factors like tax rates, wage regulations, whether components need to be imported, and the level of market competition all contribute to price variations between countries. The Big Mac index does measure this basic point – that one U.S. dollar can buy more in some countries than others. There are more accurate ways to measure differences in PPP though, which convert a larger range of products into their dollar price. Adjusting for PPP can have a massive effect on how we understand a country’s economy. The country with the largest GDP adjusted for PPP is China, but when looking at the unadjusted GDP of different countries, the U.S. has the largest economy.

Nigeria NG: GNI: PPP: 2017 Price data was reported at 968,695.761 Intl $ mn in 2017. Nigeria NG: GNI: PPP: 2017 Price data is updated yearly, averaging 968,695.761 Intl $ mn from Dec 2017 (Median) to 2017, with 1 observations. The data reached an all-time high of 968,695.761 Intl $ mn in 2017 and a record low of 968,695.761 Intl $ mn in 2017. Nigeria NG: GNI: PPP: 2017 Price data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s Nigeria – Table NG.World Bank.WDI: Gross Domestic Product: Purchasing Power Parity. PPP GNI (formerly PPP GNP) is gross national income (GNI) converted to international dollars using purchasing power parity rates. An international dollar has the same purchasing power over GNI as a U.S. dollar has in the United States. Gross national income is the sum of value added by all resident producers plus any product taxes (less subsidies) not included in the valuation of output plus net receipts of primary income (compensation of employees and property income) from abroad. Data are in constant 2017 international dollars.;International Comparison Program, World Bank | World Development Indicators database, World Bank | Eurostat-OECD PPP Programme.;Gap-filled total;

Nigeria GNI: PPP: 2021 Price data was reported at 1,176,731.655 Intl $ mn in 2021. Nigeria GNI: PPP: 2021 Price data is updated yearly, averaging 1,176,731.655 Intl $ mn from Dec 2021 (Median) to 2021, with 1 observations. The data reached an all-time high of 1,176,731.655 Intl $ mn in 2021 and a record low of 1,176,731.655 Intl $ mn in 2021. Nigeria GNI: PPP: 2021 Price data remains active status in CEIC and is reported by World Bank. The data is categorized under Global Database’s Nigeria – Table NG.World Bank.WDI: Gross Domestic Product: Purchasing Power Parity. PPP GNI (formerly PPP GNP) is gross national income (GNI) converted to international dollars using purchasing power parity rates. An international dollar has the same purchasing power over GNI as a U.S. dollar has in the United States. Gross national income is the sum of value added by all resident producers plus any product taxes (less subsidies) not included in the valuation of output plus net receipts of primary income (compensation of employees and property income) from abroad. Data are in constant 2021 international dollars.;International Comparison Program, World Bank | World Development Indicators database, World Bank | Eurostat-OECD PPP Programme.;Gap-filled total;