Due to the ongoing Covid-19 pandemic, Africa’s economy, like the rest of the world, has continued to lag behind.
Some African currencies have also weakened in comparison to the US dollar or the pound.
The crippling currencies have been caused primarily by low living standards and a shrinking national economy.
According to the International Monetary Funds, the US currency is the most widely used currency on the planet, accounting for 60% of all transactions.
The top ten most powerful African currencies in terms of the US dollar are shown below.
1. The Libyan Dinar (1 USD = LD 1.41)
For many years, the Libyan Dinar has been the strongest currency when compared to the US dollar.
Despite the ongoing turmoil following the overthrow of long-time ruler Muammar Gaddafi, the North African country’s currency enjoys a low exchange rate with the US dollar.
2. Dinar Tunisien (1 USD = DT 2.87)
Tunisia has showed strong resistance to the US dollar, despite the Covid-19 protests and a faltering economy. Tunisia also has formidable import and export policies, with conversions that are both static and strictly regulated.
3. Ghanaian Cedi (1 USD = GH 5.49).
The Ghanaian currency is the most widely used in Sub-Sahara Africa, yet it still ranks third behind Libya’s Dinar and Tunisia’s Dinar. The Ghanaian Cedi, hailed as Africa’s beacon of democracy, has the highest GDP per capita in West Africa.
4. Moroccan Dirham (MAD 9.20 = 1 USD)
Morocco’s currency has been tied to the Euro at 60% and the US dollar at 40% for many years. Due to its proximity to Europe, Morocco also loves undertaking direct trade with a variety of European countries.
5. Pula of Botswana (1 USD = P 11.6)
The Pula’s strength is due to the country’s excellent economic and political system.
6. Zambian Kwacha (1 USD = ZK 13.4)
Zambia is Africa’s top copper producer, and its currency is heavily influenced by global copper prices.
7. Rupee de Seychelles (1 USD = SR 13.64)
Seychelles, dubbed a “luxury tourism haven,” has a stringent monetary policy that has resulted in the strengthening of its currency. Its modest population of over 100,OOO people has also contributed to the country’s economic growth.
8. Rand of South Africa (1 USD = R 14.87)
South Africa, Africa’s top gold producer, relies significantly on the metal to strengthen its economy. Malawi, a country in southern Africa, even pegs its economy to the Rand.
9. Eritrean Nakfa (NFK 15.00 = 1 USD)
The north African country’s currency is protected against depreciation by a fixed exchange rate.
This was bolstered when it recently restored ties with Ethiopia, a former bitter foe, allowing trade between the two countries to resume.
10. The Egyptian Pound (1 USD = E£ 15.86).
To assist meet the terms of a $12 billion IMF loan, Egypt has enacted a number of draconian economic measures, including depreciating the pound, cutting energy subsidies, and instituting a value-added tax. Despite this, the government imposed interest rates in order to attract both domestic and foreign investment. Its currency has remained stable over time.