Several African currencies have seen a gain in value against the dollar as the green buck has taken a beating from the credit market crisis and the looming threat of recession in the US. So is it good or bad news? Well that seems to depend on what business you are undertaking. If you are an exporter you probably are feeling a pinch. But farmers, manufacturers and potential importers of machinery can take advantage of the strengthening currencies to import capital goods at cheaper rates. This is the time to import items such as fertilizer, vehicles, and chemicals and oils that would otherwise cost a whole lot more if the currencies were weaker.
A second advantage is that with currencies strengthening, the amount of money governments are paying for oil imports is lower, whether this translates into cheaper prices at the fuel pump though depends on how much the companies selling the oil are passing on the benefits to the consumer.
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