Due to the ongoing Covid-19 pandemic, Africa’s economy, like the rest of the world, has continued to lag. Some African currencies have also become weaker in comparison to the US dollar or the pound.
The crippling currencies have been caused primarily by low living standards and a shrinking national economy. This post will be discussing the top 10 strongest currencies in Africa.
According to the International Monetary Funds, the US currency is the most widely used currency on the planet, accounting for 60% of all transactions.
Only when African currency rates are higher than those of other countries are they considered strong.
Importing items becomes less expensive when the currency is strong, It also means it’s trading at higher levels than it has in the past.
The instability of the Forex market is reduced when a country’s medium of exchange is strong.
But, in Africa, what are the most valuable currencies? Be aware that several African currencies are tied to non-African currencies.
The French CFA franc, for example, backs West African countries and currencies. Benin, Burkina Faso, Guinea-Bissau, Ivory Coast, Mali, Niger, Senegal, and Togo are among these countries.
Top 10 Strongest Currencies In Africa
10. Egyptian Pound (1 USD = E£ 15.86)
An Egyptian pound is a unit of currency in Egypt. To assist meet the terms of a $12 billion IMF loan, Egypt has introduced several draconian economic measures, including depreciating the pound, reducing energy subsidies, and introducing a value-added tax.
Because of its unauthorized use in Sudan and the Gaza Strip, the Egyptian Pound has gained value over time.
In addition, the EGP has appreciated as a result of the government’s decision to lower interest rates to attract both domestic and foreign investment.
The Egyptian pound, like other African currencies, has numerous symbols, including E£ and LE.
9. Eritrean Nakfa (1 USD = NFK 15.00)
Eritrean Nakfa is a currency used in Eritrea. The North African country’s currency is protected against deflation by a fixed exchange rate.
This was boosted when it recently restored ties with Ethiopia, a former bitter foe, allowing trade between the two countries to resume.
Eritrea’s legal tender is the Eritrean Nakfa. Because the country’s government does not float the currency, it has remained stable over time. It likes the stability of a stable exchange rate instead.
8. South African Rand (1 USD = R 14.87)
South African Rand is a unit of currency in South Africa. South Africa is Africa’s top gold producer, is strongly dependent on metal to support its economy. Malawi, for example, attaches its economy to the Rand.
For many years, the value of the ZAR was governed by the price of gold, which was the country’s primary export.
However, Rand’s price history has been affected by strong events over time. The ZAR is a valued currency and one of the few African currencies used in Kenya.
However, because it is tied to the rest of the globe, it is subject to some volatility. Furthermore, because South Africa’s political situation is unstable, the legal tender is vulnerable to price changes.
7. Seychellois Rupee (1 USD = SR 13.64)
Seychellois Rupee is a currency in Seychelles. Seychelles is known as a luxury tourism destination, with a strict monetary policy that has seen its currency appreciate.
Foreign investments have also helped in the recovery of the economy and the expansion of small-scale manufacturing, agriculture, and fisheries.
As a result, Seychelles’ GDP is broader, making it a leader in a highly valued currency. Its low population of over 100,000 people has also contributed to the country’s economic growth. The Seychelles Rupee is the country’s legal tender.
In addition, due to the country’s market-based economy, the Seychellois Rupee is more valuable.
6. Zambian Kwacha (1 USD = ZK 13.4)
Zambian Kwacha is a unit of currency in Zambia. Zambia’s Kwacha has a high value due to the country’s status as Africa’s top copper producer.
Copper is a valuable metal. As a result, the currency may change in response to changes in commodity prices on the global copper market.
Due to this reason, when prices remain consistent, the country benefits from a valuable currency. However, if prices are unstable, this has a detrimental impact.
5. Botswana Pula (1 USD = P 11.6)
Botswana Pula is a unit of currency in Botswana. The Pula’s strength is due to the country’s excellent economic and political system.
Because of Botswana’s strong economy and relatively stable democracy, the Pula is highly valuable.
Furthermore, it is a desirable currency because it is traded on the Johannesburg Stock Exchange, Africa’s largest stock exchange. Before 1976, the Pula had the same exchange rate and valuation as the Rand.
4. Moroccan Dirham (1 USD = MAD 9.20)
Moroccan Dirham is a unit of currency in Morocco. Morocco’s currency has been tied at 60% to the Euro and 40% to the US dollar for a long time.
Because of its proximity to Europe, Morocco also benefits from direct trade with a variety of European countries.
In the Western Sahara territory, the Moroccan dirham serves as the sole legal currency. It is one of Africa’s most valuable currencies due to its counter status.
1 MAD = 0.103182 USD was the currency exchange rate. Even though the MAD is unregulated, exportation is prohibited by law.
3.Ghanaian Cedi (1 USD = GH 5.49)
Ghanaian Cedi is a unit of currency in Ghana. The Ghanaian currency is the most widely used in Sub-Sahara Africa, yet it still ranks third behind Libya’s Dinar and Tunisia’s Dinar.
The Ghanaian Cedi, recognized as Africa’s beacon of democracy, has the highest GDP per capita in West Africa.
Ghana’s currency was very volatile for many years until the Bank of Ghana replaced the Cedi in 2007.
The currency has remained strong in Africa as a result of the government’s spending plans and employment creation.
2.Tunisian Dinar (1 USD = DT 2.87)
Tunisian Dinar is a unit of currency in Tunisia. Another North African country is in the running for second place.
Tunisia has shown strong resistance to the US dollar, despite the Covid-19 protests and a failing economy.
It was a French colony with the French franc as its main currency. However, in 1960, the franc was replaced by the dinar, abbreviated as DT.
Tunisia’s monetary policy, which makes it unlawful to export or import dinars or converts them to other currencies, has allowed the dinar to rise to become one of Africa’s most valuable currencies.
Furthermore, the country’s economy is export-oriented, with agriculture and petroleum exports accounting for a large share of GDP.
1.The Libyan Dinar (1 USD = LD 1.41)
A Libyan Dinar is a unit of currency in Libya. For many years, the Libyan Dinar has been the strongest currency when compared to the US dollar.
It has been gaining strength in recent years as a result of the country’s central bank’s strict monetary policies.
Despite the ongoing conflict following the overthrow of long-time ruler Muammar Gaddafi, the North African country’s currency has a low exchange rate with the US dollar.
The CBL operates a program in Libya where it only sells a certain amount of dollars to its inhabitants.
Its strength has also been gradually expanding since the reopening of formerly blocked oil ports and fields. As a result, the country’s dollar earnings from oil sales increased.
The Libyan Dinar is also the highest currency in Africa.
Conclusion
The money (exchange rates) provided above may change slightly due to changes in the economy, market, and other reasons.
Frequently Asked Questions
Which is the strongest currency in Africa?
Currently, the Libyan Dinar is the strongest currency in Africa.
