The Strongest Currencies In Africa determines the economical demands of a country. This also has an immediate effect on a currency’s performance in the global market
10 currencies are significant for their high value in Africa.
When you compare the exchange rates of one currency to another and analyze it using the general overview in the global marketplace, you would be able to categorize the currency as a strong or weak currency.
Factors like economic policies, interest rates, and stability; used for financial analysis are the major determinants of the strength of any currency.
Currency values are a constant concern of foreign investors, as it is essential for their investment decisions and currency analysis in a country.
Apart from investments, when your want to make a trip to a foreign country in Africa, you will need to know the value of the country’s currency against yours.
The United States dollar is considered the global currency and is also the currency used in this post for comparing the value of the strongest currencies in Africa.
Below are the top 10 strongest currencies in Africa.
Strongest Currencies In Africa
Recent Exchange Rate: $1 = 2.81 TND
The Tunisian currency, “Dinar”, is the highest, most valuable, and strongest currency in Africa.
Tunisia is an Arabic country in North Africa. It is a unique currency that attracts corporate investments from foreign partners and bodies.
The Tunisian Dinar is linked to the European dollar since it is used to form a single currency with the Algerian Dinar. It is stable because it obtains substantial support from other countries.
Tunisia has some monetary policy; for instance, it is illegal to import, export, or convert the Tunisian dinar to other currencies. This is one of the reasons why it is one of the strongest currencies in Africa.
Also, the Tunisian economy is export-driven and has agriculture and petroleum products as Britain’s GDP for export.
Recent Exchange Rate: $1 = 4.55 LYD
Libya’s primary economy is dependent mainly on oil exports in Africa, which makes the LYD significant as one of the strongest currencies in Africa.
This Libyan Dinar has to be converted to the US Dollar or other foreign currencies to be most functional in foreign exchange.
The Libyan Dinar was issued by the National Bank of Libya and is one of the strongest currencies in Africa.
The monetary policies by Libya’s central bank are rigorous, and the Libyan Dinar has been the highest currency in Africa for a long time before it was succeeded by the Tunisian Dinar.
Libya is abundant in natural resources like gold, oil, and silver.
The Libyan Dinar has been a highly stable currency, even when there was a political upheaval in 2011 in Libyan due to domestic concerns.
Recent Exchange Rate: $1 = 6.06 GHC
The Ghana Cedi is the strongest currency in Sub-Saharan Africa. It is used as the official currency in Ghana and the northern regions of Togo.
The Ghanian Cedi replaced the former Ghana currency in 2011. Even with the 2008 foreign exchange crisis that affected Ghana, Tunisia, South Africa, Morocco; the Ghanian currency was not affected as much as the other countries.
The Cedi is convertible to the US Dollar at 1 GHC = 0.20 USD or 1$ = 4.55 GHC.
Ghana has the highest productivity and the largest Gross Domestic Product (GDP) in West Africa. This is part of the reason why the Cedi is one of the most valued currencies in Africa.
Recent Exchange Rate: $1 = 9.07MAD
The Moroccan dirham is the de facto currency in the eastern Sahara region. Even though the MAD is yet to be regulated, it is illegal to export it, as it is seen as one of the strongest currencies in Africa.
Recent Exchange Rate: $1 = 11.29BWP
Botswana has a strong economy and relatively stable democracy; the Botswana Pula is also of high value.
It is one of the appealing currencies traded on Africa’s largest stock exchange, the Johannesburg Stock Exchange.
Before 1976, the Pula had the same exchange rates and value as the Rand.
Recent Exchange Rate: $1 = 13.33 SCR
The Seychellois Rupee is used in Seychelles, an Indian Ocean country, and has one of Africa’s most valuable currencies. The currency’s strength is attributed to the country’s stringent monetary policy.
The Seychellois Rupee is valuable due to its market-based economy. Seychelles imports and exports goods, drives its economy, making the currency a stable one in Africa.
The country is also popular for its tourism attractions. This also brings in a lot of foreign exchange, which contributes to the currency’s strength.
Foreign investment also aids the growth of not only the economy, but also the expansion of small-scale manufacturing, and agricultural industries. Seychelles’ GDP has become more diversified and valuable due to all these.
SOUTH AFRICAN RAND
Current Exchange Rate: $1 = 14.89 ZAR
According to the World Bank, South Africa has a GNP of $351.4 billion, which makes it one of the highest economies in Africa.
The South African economy is dependent on diverse industries like tourism, mining, and financial services.
Gold used to be the country’s primary export for many years, and its price influenced the value of the South African Rand.
There is continued progress in the South African mining industry and has projected the Rand as of Africa’s most powerful currencies.
The price trend of the Rand has been driven by major global events over time. The ZAR is the African currencies used in Kenya, but because it is tied to the global economy, it is subject to some volatility.
The politics played in South Africa makes the currency unstable, causing price volatility in the official currency.
Namibia, Swaziland, Lesotho, and other numerous South African countries, have their currencies tied to the rand at a one-to-one rate. This means that their singular currency worth is determined by the value of the ZAR, which measures 14.89 units per USD.
Current Exchange Rate: $1 =15.00 ERN
The Eritrea Nakfa is among the most powerful currencies in Africa due to its stable exchange rates among other African currencies.
Eritrea is a country with lush areas in agricultural and farming practices. There is a constant and high demand for food in Eritrea, which makes Eritrea’s currency one of the highest valued currencies in Africa.
Current Exchange Rate: $1 =15.71EGP
Egyptian Pound is Egypt’s national currency. It has been in use for more than 200 years.
Egypt is a populous African country in the northeast region of Africa. Cairo, Africa’s largest city, and Egypt’s capital account for two-thirds of the country’s population and GDP.
The Egyptian economy is one of the world’s oldest economies; and its financial sector, one of Africa’s largest.
Current Exchange Rate: $1 = 16.87 ZMW
Zambia’s official national currency is the Kwacha and has replaced the Zambian pound for over 54 years.
Zambia is Africa’s largest copper-producing country, and this accounts for the reasons why it has one of the strongest currencies in Africa.
The country has vast and abundant natural resources, including copper as the most prevalent metal in the country.
Read Also: Top 10 Most Expensive Coins in the World
The economy and financial status of a country are determined by its currency. Some currencies in Africa are the strongest because of the productivity and investments tied to their economy. This is not only beneficial to the country as a whole but the citizens also.