The first thing you should know about currencies is that their values are hardly constant. This is partly due to the unexpected movements in exchange rates which can either be favourable or not.
According to Investopedia, “exchange rates have a substantial influence on companies’ operations and profitability. Exchange rate volatility affects not just multinationals and large corporations, but it also affects small and medium-sized enterprises, including those who only operate in their home country. While understanding and managing exchange rate risk is a subject of obvious importance to business owners, investors should also be familiar with it because of the huge impact it can have on their holdings”.
The exchange rate basically means the value of a currency when converted to another currency during a trade. The dollar, for example, is currently the most universally accepted benchmark currency because of its wide usage during international trade.
In this analysis, we compared currencies by converting the sum of 1000 in each of these currencies to the dollar.
Now, the top ten strongest currencies in Africa are basically currencies with the highest values when converted to the dollar, or any other universally accepted currency for that matter.
The top ten strongest currencies in Africa at the moment are as follow;
- Tunisian dinar: This is currently the strongest and most valuable currency in Africa. As at the time of publication, checks by Pulse Ghana shows that TND1000 converts to $352.6.
- Libyan dinar: Libya currently has the second strongest and most valuable currency on the continent, second only to Tunisia. When converted to the dollar, LYD1000 will give you $219.338.
- Ghanaian cedi: This West African country has the third strongest and most valuable currency in Africa. GHS1000 will give you $163.54.
- Moroccan dirham: Morocco has the fourth-strongest currency in Africa, for now. Checks by BI Africa showed that when converted to the dollar, DH1000 becomes $109.5.
- Botswana pula: Botswana in Southern Africa has the fifth strongest currency on the continent. BWP1000 converts to $87.23. However, this may have changed slightly by the time you convert yours due to exchange rate volatility.
- Seychellois rupee: This tiny island country which is located in the Somali Sea, has one of the strongest currencies in Africa. SCR1000 converted to $76.38 as at the time of filing this report.
- Namibian dollar: When we converted NAD1000 to the dollar, we got $67.15.
- Eritrean nakfa: In Eritrea which is located in the Horn of Africa, they use a currency called the Eritrean nakfa. The currency has the eighth strongest exchange rate against the dollar. As at the time of the comparison, ERN1000 converted to $66.67.
- Swazi lilangeni: Although it is among the poorest countries on the continent, Eswatini (Swaziland) has one of the strongest currencies. When converted to the dollar, SZL1000 gave us $66.19.
- South African Rand: South Africa is one of the continent’s strongest economies. It also has one of the strongest currencies. When we convert ZAR1000 to the dollar, we get $65.24.