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  • Updated: August 29, 2023

Ten Strongest Currencies In Africa

Ten Strongest Currencies In Africa

The significance of a nation's exchange rate explains why different nations have various rates. 

Some nations may brag about having relatively stable exchange rates, but others can't. The latter is common in Africa, where some of the local currencies are among the world's weakest.

Exchange rates play a pivotal role in the global economy, influencing international trade, investments, and tourism.

The value of one currency about another is represented by exchange rates. 

As a result, the strength of a country's exchange rate, particularly against the dollar, reflects its leverage on global commerce.

Simply put, a stronger currency means a stronger economy. 

In short, the exchange rate of a country simply indicates how well that country is going economically. 

Inflation, economic stability, political stability, international trade, and foreign investment, among other significant economic variables, all have a direct impact on a country's currency strength.

Below are the ten strongest currencies in Africa. Our listing goes from descending to ascending order. 


10. Lesotho Loti

Exchange rate: 1 USD = 19.08 LSL

The loti (LSL) is the currency of Lesotho, a country in southern Africa. 

Lesotho is geographically surrounded by South Africa, and the country is economically connected with it as well. In this location, the South African rand is also accepted as legal tender.

Agriculture, manufacturing, mining, and services dominate the country's economy and Lesotho is well-known for its textile and clothing industries. 

It is also exploring its diamond and water resources. 

Lesotho is a member of the Southern African Customs Union (SACU) in terms of global commerce.

 

9. Namibian Dollar

Exchange rate: 1 USD = 19.08 NAD

Namibian dollars (NAD) are the currency of Namibia, a country in southern Africa. 

The NAD is fixed in exchange with the South African rand (1 ZAR = 1 NAD). However, the rate still varies significantly, usually about 0.01. 

Mining, industry, agriculture, and tourism are the mainstays of Namibia's economy.

Namibia is one of Africa's poorest countries, with an unemployment rate of more than 20%.

Namibia's economy is primarily reliant on commodity exports due to the country's mineral riches, which include diamonds, uranium, copper, and gold.


8. Zambian Kwacha

Exchange rate: 1 USD = 18.6 ZMW

The Zambian kwacha (ZMW) is the national currency of Zambia, a country in southern Africa. 

When Zambia obtained independence from Britain in 1968, the kwacha replaced the pound sterling. 

Despite being one of Africa's most powerful currencies, the ZMW is rarely traded. This is related to inflation and volatility throughout time.

Zambia is Africa's largest copper producer, hence its currency fluctuates in response to fluctuations in global copper market commodity prices. 

The country grows maize, tobacco, cotton, and soybeans. There are developing industries focused on textiles, food and beverages, and building materials. 

 

7. Eritrean Nakfa

Exchange rate: 1 USD = 15.0 ERN

The Eritrean nakfa (ERN) is the official currency of Eritrea, a country in the Horn of Africa. 

Because the Eritrean government prefers a fixed exchange rate, the Nakfa has remained constant over time.

Eritrea is an agricultural country with abundant fertile areas for growing crops such as sorghum, millet, wheat, and barley. 

Food demand is always high, ensuring the economy's rapid growth. 

Eritrea is also home to the Bisha Mine, one of Africa's largest gold and copper mines.


6. Seychellois Rupee

Exchange rate: 1 USD = 13.9 SCR


In East Africa, the Seychellois rupee (SCR) is a strong currency. 

Foreign investment, as well as growing agriculture, fisheries, and small-scale enterprises, have aided the country's economic development. 

The economy is also heavily driven by the import-export sector, which helps to keep the currency steady.

The Seychelles has the highest GDP of any African country. 

Another element contributing to the Seychellois rupee's high value is the country's independent and stringent monetary policy. 

Furthermore, the country has a developed tourism industry.

 

5. Botswana Pula

Exchange rate: 1 USD = 13.5 BWP

Botswana's pula (BWP) is the most powerful currency in southern Africa. 

The pula has been in circulation in Botswana for over 45 years, since the country's independence from the United Kingdom. 

The BWP is linked to a basket of currencies, one of which is the South African rand.

The BWP is one of Africa's most valuable currencies due to Botswana's robust economy and typically stable political structure. 

It is traded on the Johannesburg Stock Exchange, Africa's largest stock exchange.

 

4. Ghanaian Cedi

Exchange rate: 1 USD = 11.5 GHS


The Ghanaian cedi (GHS) is Africa's fourth most valuable currency. 

For many years, Ghana's currency has been suffering increased volatility. To address this issue, the Bank of Ghana revised the Cedi exchange rate in 2007. 

Ghana has the biggest GDP in the region, making the cedi the most valuable currency in West Africa and Sub-Saharan Africa.

However, high inflation and rising import costs have resulted in increased foreign exchange outflows in 2022-23, forcing Ghana to spend significantly more to meet its obligations to international creditors, causing the exchange rate to deteriorate.

 

3. Moroccan Dirham

Exchange rate: 1 USD = 10.1 MAD

The Moroccan dirham (MAD) is Africa's third most valuable currency. 

The MAD is legal tender in Morocco and bordering Western Sahara countries. Because it cannot be exchanged outside of the country, it is also known as a closed currency.

Although the export of Moroccan dirhams is prohibited by law, it continues unabated. Only in this region is the MAD the de facto medium of commerce. 

Morocco benefits from its proximity to Europe when conducting business with the EU. As a result, its economy is rapidly expanding.


2. Libyan Dinar

Exchange rate: 1 USD = 4.7 LYD

The Libyan dinar (LYD) is ranked second among African currencies. 

The Libyan pound was replaced by the LYD in 1971, and it was the strongest currency in Africa for a long period after that.

The decline in its worth is connected to the dip in international oil prices. 

Oil sales are Libya's principal source of income, accounting for more than 95% of export earnings and 60% of GDP. 

Libya is also a gold and silver miner.

The Libyan dinar is regarded as a stable currency, as it maintained a high position in world currency evaluations even during the political turbulence of 2011.

 

1. Tunisian Dinar

Exchange rate: 1 USD = 3.0 TND

The Tunisian dinar (TND) is Africa's strongest currency. Tunisia is a North African country. 

The TND was introduced in 1958, following Tunisia's independence from France. It was tied to the US dollar at a fixed exchange rate of 0.42 dinars to one dollar until 1971.

This country's low inflation rate aided its currency's rise to the top of the rankings. It is now prohibited in Tunisia to import, export, or convert the dinar into another currency. 

The country has a strong import and export policy. The majority of Tunisia's GDP is derived from agriculture and oil exports. 

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