The strength of a country’s currency is quite important as it determines the purchasing power of that currency. Countries with weak currency have very low purchasing power and will need more currency to purchase a product. While a country with a strong currency will need less.
Every government works hard to build a strong currency for its citizens not only because it provides better purchasing power but because it provides stability which is quite important for the country’s economic growth. The stability of a country’s currency helps to prevent frequent fluctuations in the value of the currency, this helps to give investors the necessary confidence to invest in the economy of the country. Most countries in Africa with weak currency often lack investors because their weak currency is quite unstable and often fluctuate between high and low values frequently, this often scare potential investors away as they will have no guarantee of making any profit from their investment.
In building a strong currency, a country must be able to produce real products like crude oil, Agricultural products, technology etc which it can sell to other countries at a profit. The amount which the country produces also must increase over time. Countries with strong currencies are involved in the production of one or more profitable real products which it exports to other countries. The more a country can export, the more it stands the chance of increasing the strength of its currency. Also, the reserves in foreign banks also help to determine the strength of the country’s currency.
In this post, we have given you a list of the top 10 Strongest Currencies in Africa. We have made use of the US dollar as a standard for comparison in this article as it is more powerful, popular and more stable than other currency in the market. We have also made a detailed post about the top 10 weakest currencies in Africa. You might want to check that out too.
The Dinar is the currency of Libya and is subdivided into 1000 Dirham. The currency was issued in 1971 by the Central Bank Of Libya as a replacement of the pound. In 1972, the Libyan government also established the Arab foreign bank to help deal with overseas investments and protect its foreign reserves.The Libyan Dinar remains the strongest currency in Africa. Despite Libya’s recent crisis, the country’s currency has continued to perform well. It currently exchanges at the rate of 1.36l.dinar to the US dollar.
2. Tunisian Dinar
The Dinar is the currency of Tunisia and is subdivided into 1000 milim. The Dinar was introduced in 1960 by the Central Bank Of Tunisia as a replacement of the French Franc which was used prior to that time in the country. The Dinar was once pegged to the French Franc but was later rectified as a result of the devaluation of the French Franc in 1958. The Dinar is a very stable currency as a result of the low inflation in Tunisia. The Tunisian Dinar is regarded as the second strongest currency in Africa based on its exchange rate against the US dollar. Currently the Tunisian Dinar exchanges at the rate of 2.6 Tunisian Dinar to a US dollar.
3. Ghanaian Cedis
The Cedi is the unit of currency in Ghana. It is subdivided into 100 pesewas. After its independence, Ghana separated itself from the British West African pound, which was the currency used by all within the British colony. Ghana’s first independent currency was the Ghanaian pound which was later replaced by the Cedi in 1967. The Ghanaian Cedis is regarded as the third strongest currency in Africa and currently exchanges at the rare of 4.49cedis against the US dollar.
4. Sudanese Pounds
Exchange rates: 1$=6.6sp
The Sudanese pound is the currency of Sudan and used to be the currency of South Sudan before it got its own South Sudanese Pounds. The Sudanese Pound came in three phases – the first, second and third pound. The first currency to circulate in Sudan was the Egyptian pound. After Sudan became an independent country in 1956, a new currency, the Sudanese Pound, was created as a replacement of the Egyptian pound. The second edition of the Sudanese pound was introduced in 2007 and was later replaced by the third edition in 2011. The Sudanese pound is regarded as the 4th strongest currency in Africa and currently exchanges at the rate of 6.6sp against the US dollar.
Related: Dollar To Naira Exchange Rate
5. Moroccan Dirham
Exchange rates: 1$=9.4Dirham
The Moroccan currency, the Dirham, is issued by Bank Al-Maghrib (the central bank of Morocco) and is subdivided into 100 santimat.
As far back as 1882, Morocco has been using different materials as a means of exchange before its present Dirham. Copper coins were denominated as falus, silver coins denominated as Dirham and gold coins as benduqi. When Morocco came under the French protectorate in 1912, it switched its currency to the Moroccan Franc. The Dirham was later reintroduced in 1960 and replaced the Franc. The Moroccan Dirham is regarded as the 5th strongest currency in Africa and currently exchanges at the rate of 9.4Dirham to the US dollar.
6. Zambian Kwacha
Exchange rates: 1$=10.2kw
The Kwacha is the currency of Zambian and is subdivided into 100 Ngwee. Prior to the independence of the country, Zambia made use of the Rhodesia and Nyasaland pound by the British protectorate of Northern Rhodesia. After independence, the established Bank of Zambia started issuing out its own currency, the Zambian pound in 1964. In 1966 however, the country once again made a change to its currency and change it from the Zambian pound to Kwacha and its sub-unit, Ngwee. The Zambian Kwacha is considered a very strong currency in Africa and exchanges at the rate of 10.2kw against the US dollar.
7. Botswana Pula
Exchange rates: 1$=10pula
Pula is Botswana currency and means rain in the local language. It is subdivided into 100 Thebe. The sub-unit, Thebe, means shield in the local language. The Pula was introduced in Botswana in 1976 as a replacement of the South African Rand. Even though the currency underwent a 12% devaluation in 2015, it is still regarded as one of the strongest currency in Africa. The Botswana pula currently exchanges at a rate of 10 pula against the US dollar.
8. Seychelles Rupee
Exchange rates: 1$=13rs
Seychelles often regarded as the smallest country in Africa has a very strong currency. The Rupee is the currency of Seychelles. The Rupee is subdivided into 100 cents. The first Rupees was produced for an emergency in 1914 by a Board of Commissioners of Currency, authorized by the British Legislative Council. The Seychelles Monetary Authority, however, took over the issuance of currency in 1976 and replaced all The British notes issued prior to the country’s independence. The Seychelles Rupee is regarded as 8th strongest currency in Africa and it currently exchanges at the rate of 13RS against the US dollar.
9. Namibian Dollars
Exchange rates: 1$=13.66nad
The Namibian dollar often denoted with the $ or N$ symbol has been the country’s currency since 1993. Like most other currencies, it is divided into 100 cents. The dollar was actually a replacement of its former currency, the South African rand, which the country was using while it was been ruled by South Africa from 1920-1990. The Namibian dollar was first issued by in 1993 by the Bank Of Namibia and has been growing stronger ever since. Currently, the Namibia dollar exchanges at the rate of 13.66N$ against the US dollar.
10. Swaziland Lilangeni
Exchange rates: 1$=13.58szl
Lilangeni is the currency of Swaziland. It is issued by the Central Bank Of Swaziland and is subdivided into 100 cents. The currency was introduced in 1974 at par with the South African Rand through the common monetary Area. However, paper money wasn’t introduced until late 1981, when the central bank of Swaziland took over paper money production. The currency is regarded as the tenth strongest currency in Africa and currently exchanges at the rate of 13.58szl against the US dollar.
While we have made every effort to keep this post as accurate as possible, we’ll like you to note that the exchange rate and the strength of the currencies stated here are not fixed, they are changing all the time. As each country make a profit or a loss or faces some crisis, it is bound to affect the strength of its currency, hence if you want to keep up with the latest exchange rates of any of the currency stated here, you should check the country’s central bank website or alternatively, you can make use of this currency exchange rate conversion website.
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That’s all about Top 10 Strongest Currencies In Africa 2018.
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