The exchange rate means the value of a currency when converted to another during the trade.
Our analysts painstakingly compared the currencies used across all fifty-four countries in Africa.
This was done by converting 1000 in each of these currencies to the dollar. Now, before we go ahead and reveal the top ten strongest currencies in Africa at the moment, let’s first have a little discussion about currency valuation and exchange rates.
The first thing you should know about currencies is that their values are hardly constant. This is partly due to the unexpected exchange rate movements that can either be favourable or not.
As you may well know, the exchange rate means the value of a currency when converted to another during the trade.
The dollar, for example, is currently the most universally accepted benchmark currency because of its wide usage during international trade. Therefore, the top ten strongest currencies in Africa are currencies with the highest values when converted to the dollar, or any other universally accepted currency for that matter.
Top ten African currencies with the highest exchange rates against the dollar
- Tunisian dinar: This is currently the strongest and most valuable currency in Africa. As at the time of publication, checks by BI Africa shows that TND1000 converts to $353.05.
- 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 $219.20.
- Ghanaian cedi: This West African country’s currency has the third highest exchange rate against the dollar in Africa. When we converted GHS1000, we got $164.74. That said, it’s important to note that Ghana had, in 2007, re-denominated its currency such that ten thousand Cedis became equivalent to one Ghana Cedi. The country’s Central Bank explained that the re-denomination became necessary for the sake of statistical convenience.
- 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 $110.46.
- Botswanan pula: Botswana in Southern Africa has the fifth strongest currency on the continent. BWP1000 converts to $88.22. However, this may have changed slightly when you convert yours due to exchange rate volatility.
- Seychellois rupee: This tiny island country, located in the Somali Sea, has one of the strongest currencies in Africa. SCR1000 converted to $78.35 as at the time of filing this report.
- Namibian dollar: When we converted NAD1000 to the dollar, we got $67.16.
- 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 $66.66.
- South African rand: South Africa is one of the continent’s strongest economies. It also has one of the strongest currencies. When we converted ZAR1000 to the dollar, we got $66.63.
- Swazi lilangeni: Although it is among the poorest countries on the continent, Eswatini (Swaziland) has one of the strongest currency. When converted to the dollar, SZL1000 gave us $66.62.