TOP 10 STRONGEST CURRENCIES IN AFRICA

The continent of Africa is well blessed in terms of both natural and human resources. As of today, there are 54 officially recognized countries in Africa but not all of these countries have unique currencies. About 42 different currencies accepted as legal tender in different parts of Africa and in this post we will be talking about the ten strongest currencies spent in Africa. The Libyan Dinar is famously known to be the strongest currency in Africa and this continues to be so despite the challenges facing the North African country since the death of its former leader, Muammar Gaddafi.

  1. Libyan Dinar (1 USD = 1.41 LYD)

The strongest currency in Africa for a while now has been the Libyan Dinar. Libya, an oil-rich North African country has maintained a strong currency due to the strict monetary policy introduced by the country’s central bank. The Central Bank of Libya (CBL) limits the amount of USD sold to its citizens in order to keep the Libyan Dinar strong. Increase in oil revenue due to the reopening of previously blocked oil wells and fields has also helped to strengthen the LYD.

  • Tunisian Dinar (1 USD = 2.87 TND)

The Tunisian Dinar is currently the second strongest currency in Africa. Tunisia is also located in the North of Africa, and the country’s economy is based majorly on exports. Petroleum and Agriculture are the mainstays of the Tunisian economy and have contributed immensely to the country’s economy. Good monetary policies put in place by the country’s government also helps the Tunisian Dinar to stay strong.

  • Ghanaian Cedi (1 USD = 5.79 GHS)
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Ghana, a country in West Africa bordering Nigeria has the third strongest currency in Africa. After years of experiencing volatility with the Cedi (GHC), the Bank of Ghana had to phase out the Cedi (GHC) in 2007, replacing it with Cedi (GHS). Today, a strong economy, boosted by job growth and a high GDP per capita, the largest in the West African sub-region have helped the Cedi (GHS) to stay strong.

  • Moroccan Dirham (1 USD = 9.85 MAD)

The Moroccan Dirham is another strong African currency. Issued by the Bank Al-Maghrib which is the Central Bank of Morocco, the Dirham exchanges at the rate of 9.85 MAD to the dollar. A strong economy and good monetary policies have helped to keep the Moroccan Dirham strong. It is illegal to export the MAD.

  • Botswana Pula (1 USD = 12.16 BWP)

Located in Southern Africa, Botswana has Africa’s 5th strongest currency as of now. The Botswana Pula exchanges to the dollar at a rate of 12.16 BWP currently. A stable democracy and strong economy have helped the BWP. BWP is traded on the Johannesburg Stock Exchange (JSE), the largest stock exchange in Africa. This means the currency is very much in demand and contributes to its strength.

  • Eritrean Nakfa (1 USD = 15.00 ERN)

The Nakfa, the Eritrean currency is the 6th strongest in Africa currently. The currency’s strength is based on the country’s monetary policies. The Eritrean government does not float the Nakfa, instead, it opted for a fixed exchange rate. Eritrea is located in East Africa, very close to Ethiopia.

  • Egyptian Pound (1 USD = 15.75 EGP)
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Egypt is a historic country with a rich history dating as far back as biblical times. The currency of Egypt, the Egyptian pound is one of the strongest in Africa. It exchanges to the dollar currently at a rate of 15.75 EGP per USD. Economic policies put in place by the Egyptian government have helped the EGP to gain strength.

  • Seychellois Rupee (1 USD = 17.53 SCR)

Seychelles is an African country located in the Indian Ocean off the eastern coast of Africa. The country’s currency is currently ranked as the 8th strongest in Africa. A market-based economy and strict monetary policy have helped to protect the SCR and keep it strong. The influx of foreign investments has helped to strengthen the economy of Seychelles which is another reason why the country’s currency is so valuable.  

  • South African Rand (1 USD = 18.54 ZAR)

South Africa has one of Africa’s largest economy. The country is rich in natural resources such as gold, diamond, and platinum. For a very long time, the value of the Rand was determined by Gold as it was the country’s main export but recent developments have changed that. The country has a strong economy but the political landscape in the country is not that stable and this has affected the strength of the Rand over the years. Notwithstanding, Rand remains one of Africa’s strongest currencies. Some of the countries in the South-Africa region have tied the value of their currency to the Rand at a rate of 1:1. This means the value of their currency depends on the value of the ZAR. These countries are Namibia, (Namibian Dollar {1 USD = 18.54 NAD}), eSwatini formerly known as Swaziland (Swazi Lilangeni {1 USD = 18.54 SZL}), and Lesotho (Basotho Loti {1 USD = 18.54 LSL}).

  1. Zambian Kwacha (1 USD = 18.67 ZMW)
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Currently, Zambia has the 10th strongest currency in Africa. It is the largest copper producer in Africa and the strength of the country’s currency is tied to Copper. This means the ZMW can experience volatility based on changes in the price of copper globally. The country’s economy is one of the fastest-growing in Africa which is good.

Conclusion

These are the Top 10 Strongest Currencies In Africa currently. Strong economies and good monetary policies put in place by the respective governments of the countries that own these currencies have contributed to their strength.

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