Africa is home to more currencies than any other continent on the planet. Because of this, there are a wide number of options for Forex traders. Among the currencies in Africa, which currencies are most powerful and performed the best?
It is not enough to have a nice looking currency in today’s world. The strength of a currency is determined by a number of factors that include; its supply and demand, market forces within the country, inflation and, of course, the foreign exchange market.
In this article, we consider the top 10 strongest African currencies in 2018 by comparing the currency’s exchange rate with the US Dollar.
1. Libyan Dinar.
Exchange Rate: 1 USD = 1.38 LYD.
The Libyan Dinar is Africa’s strongest currency. One dollar currently exchanges for about 1.38 Libyan dinars. This is a remarkable feat since the North African country has been in a civil unrest since former dictator Muammar Gaddafi was removed from office in 2011 Arab. Some analysts believe the currency has held strong due to the country’s extensive oil reserves and its middleman role between Africa and Europe.
2. Tunisian Dinar.
Exchange Rate: 1 USD = 2.83 TND.
The Tunisian Dinar is the second on the list. One dollar currently exchanges for about 2.83 Tunisian dinars. This North African nation has a diversified economy based on phosphate, oil, car parts manufacturing, tourism, and agro-food products. The average living standard here is relatively on the prime side with a high minimum wage. The economy is rock stable, thriving and with a small populace, resources are well distributed.
3. Ghanaian Cedi.
Exchange Rate: 1 USD = 4.79 GHS.
Ghana, with a growing and well-managed economy, has earned them the third spot with the Ghanaian cedis has their highest currency in Africa. Also, many years back, their situation could not even be compared to what is obtainable in Nigeria but as we have it today, some would even argue that they are better developed. Comparing it with the dollar, one US Dollar is equivalent to 4.79 Ghanaian cedis.
4. Moroccan Dirham.
Exchange Rate: 1 USD = 9.45 MAD.
This is one of the strongest currencies in Africa and currently exchanges at the rate of 9.45 to the U.S. dollar. Morocco’s economy is based on manufacturing, tourism, and agriculture. The country has increased investment in its port, transportation, and industrial infrastructure to position itself as a center and broker for business throughout Africa.
5. Botswanan Pula.
Exchange Rate: 1 USD = 10.64 BWP.
The pula is Botswana’s official currency, with 1 US dollar equivalent to about 10.64 pula is the 5th strongest currency in Africa. The country’s economy is regarded as an African success story; it boasts of one of the highest Human Development Indexes (HDI) in Africa. The Botswana government generates the majority of its revenue from mining, cattle ranching, and the service sector.
6. Zambian Kwacha.
Exchange Rate: 1 USD = 12.22 ZMW.
At the 6th position on the list, the Zambian Kwacha is considered one of the valuable currencies in Southern Africa. It currently exchanges at the rate of 12.22 ZMW to 1 USD. Zambia’s economy is largely agrarian with some extra revenue coming in from the tourism sector. Its lack of economic diversification and dependency on copper as its sole major export makes it vulnerable to fluctuations in the world commodities market.
7. South African Rand.
Exchange Rate: 1 USD = 14.52 ZAR.
The Rand is the official currency of South Africa. Coming in at the 7th position, the currency is one of the highest currencies in Africa for 2018. The currency was devalued almost two years ago. Although it has dropped in value over the last few years, it remains among the highest valued currency in Africa. The South African Rand currently exchanges at 1 US Dollar to 14.52 South African Rand.
8. Eritrean Nakfa.
Exchange Rate: 1 USD = 14.99 ERN.
This remote country in the horn of Africa is quite small in economy, land area and population. After parting ways with Ethiopia, it still shares the same currency with the old nation. Eritrea has a stable currency from a not too lively economy. One United States Dollar currently exchanges for 14.99 Eritrean Nakfa making it the 8th strongest in Africa.
9. Egyptian Pound.
Exchange Rate: 1 USD = 17.93 EGP.
Famous as the cradle of civilization and home to the ancient pyramids, Egypt currency stands as the 9th strongest currency in Africa. Egypt is Africa’s third largest economy and one of the most developed in the continent. It’s capital Cairo is the second largest city in Africa behind Lagos, Nigeria. Cairo is an economic and industrial hub, bustling with activities. One United States Dollar currently exchanges for 17.93 Egyptian Pound.
10. Sudanese Pound.
Exchange Rate: 1 USD = 18.06 SDG.
Another North African nation that has gone through a series of wars and divisions but yet still manages to maintain a stable currency exchange rate. Sudan’s economy is yet still afloat despite the split that saw South Sudan gaining their independence. Sudan as a nation is oil-rich and its currency is ranked tenth in Africa due to its consistency in the foreign exchange market over time.