Have you ever asked yourself the essence of a country’s currency? It has a lot to tell about the living standard of the citizens and the economy of that particular country. Many often assume that the biggest and most popular countries have the most stable currencies; this is not the case.
Do you have a hint on how African countries rank in terms of currency? Countries like South Africa and Kenya are believed to have stable currencies because of their popularity in various fields.
This is not the case. The countries you would least expect to have the most valuable currencies. South Africa appeared at position 8 as at the time this article was written, while Kenya did not make it to the top 10 of the most valuable currencies.
Many have argued that African economies and currencies depend on Africa. Europe and Asia have contributed in a big way to the failure of African economies and currencies. To survive the Odile, Africa must be independent and adopt the one-currency proposal of Kwame Nkrumah, pan-Africa hero.
The main aim of this article is to help you get a better understanding by giving you a list of the top 10 most influential currencies in Africa. Each currency is rated against the dollar as of June 5th.
Africa on the rise is pretty sure that you will be surprised. Most of the currencies in this article are lists known from list known countries. Let us dive into it:
1. Libyan Dinar (1 USD = LD 1.42)
LD has been the strongest currency for along time. The CBL in Libya has a program that only sells a given amount of dollars to its citizen.
Since the assassination of longtime leaders, Mummar Gadaffi, there has been continuous war and violence, which have negatively impacted the countries economy. All in all, it still managed to rank first in this article.
2. Tunisian Dinar (1 USD = DT 2.83)
Tunisia was under the French colony. It used French franc for a long time as its currency.
The country replaced the franc with the Dinar abbreviated as DT in 1960. The country has a strict monetary policy. In the country, it is illegal to import or export DTs or convert them to other currencies. This has given the DT a hedge higher as far as African currencies are concerned.
3. Ghanaian Cedi (1 USD = GH₵ 5.78)
Ghana’s currency has experienced a lot of volatility for a long time. In 2007, the Bank of Ghana, through the intervention of relevant authorities, replaced Cedi.
Job growth in Ghana and government spending programs have enabled the currency to grow and remain steadfast in Africa.
The country’s GDP per capita has also contributed positively to the strength of Cedi
4. Moroccan Dirham (1 USD = MAD 9.67)
The Moroccan Dirham is the existing medium of exchange in Western Sahara.
Being used as the first exchange in the Western Sahara region makes it the highest currencies in Africa. It has lost value in the past as its exchange rate against the dollar was around 1MAD = 0.103182 USD.
5. Botswana Pula (1 USD = P 11.60)
The Botswana Pula has lost value in the past. However, it still one of the valuable currencies in Africa. Its value draws from the country’s relatively stable democracy and a strong economy.
6. Eritrean Nakfa (1 USD = Nfk 15.00)
The Eritrean Nakfa is the legal tender for Eritrea.
Its stability is due to the fact that the country’s government does not float the currency. That’s also the secret behind its long-term stability in the continent.
7.Egyptian Pound (1 USD = E£ 16.23)
The unofficial use of the Egyptian pond in Sudan and the Gaza strip has made it stronger.
Government reduction on interest rates to attract foreign investment and domestic is also one of the reasons for the strength of the EGP.
8. South African Rand (1 USD = R 16.86)
Gold has been the country’s main export for a long time. Therefore, the value of the ZAR was determined by the Gold prices.
ZAR is experiencing some volatility as it is linked to the world.
South Africa’s political instability directly affects Rand’s value as it is subjected to price fluctuations. Many countries in South Africa also have pegged their currencies to the Rand at a rate of 1.
9. Seychellois Rupee (1 USD =SR 18.15)
It’s the legal tender for Seychelles.
The country’s strict monetary policy and market-based economy make it one of the continent’s highest currencies.
10. Zambian Kwacha (1 USD = ZK 18.24)
The Zambian Kwacha has lost value during these uncertain times. The strength of the Zambian kwacha is based on the fact that the country is the largest producer of copper in Africa.
Since copper is a commodity, the Zambian kwacha can experience volatility depending on the price of the merchandise in the global market.
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- Africa continent could be the next frontier for cryptocurrency
Note: The exchange rates given are only relevant to the time this article was written. The month of May and June the year 2020.
