Currencies can be weakened by a number factors – poor economic performance, corruption, lack of investors, inadequate natural resources, money laundering and so on. Some countries have been so much affected by one or more of these factors that their currency exchanges at a very poor rate to other countries currency. Most of the weakest currencies in Africa are in most cases are considered worthless because they have very low purchasing power. Most countries with weak currency lack foreign investors. Foreign investors are afraid to hold their money in such currency since they fluctuate frequently between the high and low value which is really bad for business.
In this article, we present to you some of the weakest currencies in Africa 2018 and a few number of reasons why the currency became weak. We made use of the US Dollars as a standard to show how weak these currencies are. I’ve also used the Coca-Cola – my favorite drink by the way – to give you an idea of how worthless the purchasing power of these currencies is. I did this by stating the amount you’ll need to buy a bottle of the soft drink. You can easily use this to get an idea of the value of these currencies to your local currency. Please do kindly share your thoughts and opinions about this article in the comment section.
The Sao tome and principle’s currency is called Dobra. It is a very weak currency in the international market and exchanges at a value of 20808 to a dollar. To buy a bottle of Coca-Cola, you’ll need roughly 19,000 Dobra!
Guinea is a country located in West Africa. It’s currency, the Guinea Franc, is the second weakest currency in Africa. Currently the Guinea Franc exchanges at the rate of 8,998 Guinea Franc to a US Dollar. You’ll need roughly 4,400 Guinea Franc to get a cool bottle of Coca-Cola.
Leone is the name of the currency used in Sierra Leone. Sierra Leone Leone is currently on the number three spot on our list of top 10 weakest currencies in Africa. Plagued by trade deficit (import>export) and this has considerably affected its currency in the international market. The Leone exchanges at the rate of 7,670 Leone against the US Dollar. To buy a bottle of my favorite drink in Sierra Leone, you’ll need around 3,200 Leone.
The trade deficit is a major cause of the weakness of the Uganda currency. The country import more than they export and this cause the number of funds flowing out of the country to be more than the amount coming in. The Uganda currency, the shilling, exchanges against the US Dollar at the rate of 3,603 Uganda Shilling to a US Dollar. To purchase a bottle of Coca-Cola in Uganda, you’ll need around 2,000 shillings!
Madagascar is another country known for its weak currency. Though the economy of Madagascar is tied to resource extraction which should have boosted its economy, due to lack of investors, its growth has been stunted. The country’s currency, Ariary, exchanges at the rate of 3,199.65 Ariary to the US Dollar and to get a cool bottle of Coca-Cola, one would need around 1700 Ariary.
One often wonder why a country as politically stable as Tanzania with its large economy being among the country’s with the weakest currency in Africa, sadly that’s the case. The Tanzanian Shilling exchanges at a rate of 2234 Tanzanian Shilling to the US Dollar. And to cool yourself down with a bottle of Coca-Cola, you’ll need roughly 1100 Tanzanian shilling.
In spite of the government’s strict regulations to protect the Burundian currency from becoming almost worthless, no definite progress has been made. The currency still remains as poor as it was. The currency exchanges at a rate of 1,749 Burundian Franc to the US Dollar and one would need about 900 Burundian Franc to exchange for a bottle of Coca-Cola.
Congo one of Africa’s largest copper producer has one of the weakest currency in the world. This is partly due to the low prices of copper in the international market and improper management of mines. The Congolese Franc exchanges at the rate of 1,596 Franc to the US Dollar. Give the vendor 800 Franc and you’ll get a cool bottle of the world most famous drink!
Rwanda started issuing its currency in 1960 and since then it has not been performing up to standard hence falling into a list of the top 10 weakest currency in Africa. The Rwanda Franc exchanges at the rate of 855.56 Rwanda Franc to the US Dollar. You’ll need roughly 500 Franc to get a bottle of Coca-Cola.
Malawi first issued it currency called the Malawian pound but in 1971, it changed it currency to Kwacha. The currency has not been performing well in the international market despite the government’s efforts. The Malawian currency, Kwacha, exchanges at the rate of 722 Kwacha to the US Dollar. To get a bottle of your favorite drink, Coca-Cola, in Malawi, you’ll need around 320 Kwacha.
The reason why most investors are afraid to invest in the economy of these countries due to the regular fluctuations of their currency. The economies are very unstable and so are the currency! We’ve tried as much as possible to give you the accurate exchange rate but note that these values are constantly changing and if you’ll like to get the current exchange rate of any of the currency stated here, you can visit the country’s central bank website.
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Tags: Top 10 Weakest Currencies In Africa 2018, Lowest Currencies In Africa