Most African currencies have stayed strong against the dollar despite the pandemic. Money is one of life’s necessities, serving as a medium of exchange and supporting the differences between the barter and monetary economy. Money must have a unit of account or number on which items are priced in society.
The currency is physical paper notes and coins in circulation and comes in several forms. Most African countries have their own distinct currency.
However, some African countries share the same money. The West African CFA Franc is the official currency of eight West African countries: Guinea-Bissau, Mali, Niger, Senegal, Togo, Benin, Burkina Faso, and Cote d’Ivoire.
Other African countries have multiple official currencies, such as the Namibian dollar is used alongside the South African rand in Namibia and the Swazi Lilangeni in Swaziland.
However, these currencies have been affected by the pandemic, which has affected economies. The money notes have weakened compared to the US dollar or the British Pound.
According to the International Monetary Fund (IMF), the US currency accounts for 60 percent and is globally predominant.
Some African currencies that have maintained their strength compared to the US dollar, namely:
Tunisian Dinar
Despite the effects of the pandemic on the economy, US$1 is equivalent to TND 2.87 (Tunisian Dinars). The Tunisian Dinar shows the symbol TND, which is less informal and more commonly used in financial circles. It was introduced in 1960, at a rate of 1000, to replace the Franc.
Seychellois Rupee
With about 100,000 people contributing to its Gross Domestic Product (GDP), the monetary policy has seen the Seychellois Rupee strengthen. US$1 is equivalent to 13.64 SR (Seychellois Rupees).
Moroccan Dirham
Morocco has pegged its currency to the US dollar at 40% and the Euro at 60% over the years and conducts direct trade with several European countries. US$1 is roughly equivalent to 9.20 MAD (Moroccan Dirham).
Eritrean Nakfa
Eritrea maintains a fixed exchange rate to protect its currency from depreciation, which has boosted its currency. It facilitates trade within the country and its neighbors, including Ethiopia. US$1 is roughly equivalent to 15.00 NFK (Eritrean Nakfa).
Zambian Kwacha
Zambia is well-known in Africa as a copper producer, as its currency is established on the global copper price. US$1 equals 13.4 ZK (Zambian Kwacha).
Egyptian Pound
With the interest rates that attract domestic and foreign investments, the Egyptian Pound has remained stable. The Egyptian government set economic policies to keep their currency at a competitive level against the dollar which are not limited to:
- Devaluing the Pound.
- Instituting a Value Added Tax (VAT).
- Reducing energy subsidies to meet a $12 billion loan from the International Monetary Fund (IMF).
US$1 is roughly equivalent to 15.86 E£ (Egyptian Pounds).
Libyan Dinar
US$1 is equivalent to approximately 1.41 LD (Libyan Dinar), which has maintained its position against the dollar despite the country’s conflicts.
South African Rand
US$1 is approximately 14.87 Rands in South Africa, which is a gold producer. They rely on gold to boost the economy, which helps strengthen its currency.
Ghanaian Cedi
US$1 is roughly equivalent to 5.49 GH (Ghanaian Cedis). It is the leading currency in Sub-Saharan Africa, alongside the Libyan Dinar and the Tunisian Dinar, with the highest GDP per capita in West Africa.
Botswana Pula
US$1 is roughly equivalent to 11.6 P (Botswana Pula).
The country’s currency strength reflects its economy and political structure.
