To emphasize on the strength of currencies, here is a list of the seven strongest African currencies…
Currency is the unit of exchange of either good or services generally accepted in a country. It is also referred to as a reflection of the strength of a country’s economy in comparison with other countries. This is why some currencies are stronger than others.
Read: How Ghana’s Former President John Mahama Declared Ghana Cedi Strongest Currency in Africa
In the African continent, some African currencies are stronger than others in terms of exchange rate. The strength of a currency is not measured by a country’s population or natural resources, rather it is by how well it does in the international forex market. As you read through, you’ll be surprised that some countries least expected to make the list, actually made it to the top.
For example; Naira – the official currency of Nigeria, regarded as the giant of Africa did not make the list, while the Dinar – the official currency of Libya, made the list. Libya for instance, is said to have been on the receiving end of an intense civil conflict, which engulfed the country in the last half decade. However despite the setbacks, the country sure has one thing to boast about – her currency.
To emphasize more on the strength of currencies, here is a list of the seven strongest African currencies. The United States Dollar (USD) which is among the top strongest currencies in the world, will be used for our analysis. This is because the Dollar is used worldwide as the general currency for exchange of goods and services.
As you read through, it is important to note that these exchange rates vary from time to time.
At 12.8 Rands to a Dollar, the South African Rand has had series of devaluation over the past couple of years. SA’s Rand would have been a bit up the ladder, but then a fall in commodity prices has hit the Rand in recent times, causing its value to decline against with its value declining against the Dollar.
Botswana’s official currency, Pula, found its way to the sixth. Against the Dollar, Pula is 10.8. The Pula, as has been gathered, is a strong currency on the African continent. The Botswanan economy too cannot be exempted in this litany of praises. Botswana, according to reports, has one of the highest Human Development Indexes (HDI) in Africa.
We cannot talk about the strongest African currencies without mentioning the Moroccan Dirham. 1 Dollar currently exchanges for about 9.9 Moroccan Dirham.
The Kwacha is one of the most valuable currencies in the Southern part of the African continent. For the exchange rate, the Zambian Kwacha is 1 Dollar for about 9.84.
Sudanese Pounds SDG is considered one of the strongest currencies in Africa. The country, which has been torn apart by Civil War, has managed to maintain the value of its currency. Sudanese pounds as against 1 USD is at 6.4.
Being the only West African country on the list, Ghana’s exchange rate with the Dollar is 1 USD to 4 GHC. According to reports, the Cedi, which has long revolved around 4 Ghc to a Dollar, grew stronger earlier in March 2017 as it rallied to 4.3700. Investors according to sources await a replacement for central bank governor Abdul-Nashiru Issahaku, who recently resigned.
Asides the negativities, Libya has the strongest currency in Africa. When compared with the Dollar, 1 USD is equal to 1.4116 Libyan Dinars. This is an impressive achievement considering that the country has been cut up in a civil conflict since former strongman Mummar Gaddafi was ousted in the 2011 Arab spring uprising.
Join GhanaStar.com to receive daily email alerts of breaking news in Ghana. GhanaStar.com is your source for all Ghana News. Get the latest Ghana news, breaking news, sports, politics, entertainment and more about Ghana, Africa and beyond.
