Currency strength expresses the value of currency. For economists, it is often calculated as purchasing power ( the amount of goods and services that can be purchased with a unit of currency), while for financial traders, it can be described as an indicator, reflecting many factors related to the currency such as, fundamental data, overall economic performance or interest rates.
The coronavirus has greatly impacted Africa economy with some countries feeling it more than others. Several currencies have taken an unfortunate plunge, however, the usual top states have managed to maintain their positions.
Below are the top 10 strongest currencies in Africa 2021.
1. Libyan Dinar (1 USD = LD 1.41)
Libya is a country in North Africa with a population of 6.7 million people. Despite it’s small size, Libya has been gaining its strength in recent times because of the strict monetary policy introduced by the country’s central bank.
2. Tunisian Dinar (1 USD = DT 2.87)
For many years, this North Africa county w was under the French colony and used the French franc as its currency. But in 1960, Tunisa replaced the franc with the dinar abbreviated as DT.
Tunisa has a diversified economy based on car parts manufacturing, oil, tourism, and agro-food products. The economy is rock stable and thriving.
3. Ghanaian Cedes (1USD – 4.75 CEDI)
Ghana’s currency experienced lots of volatility until the Bank of Ghana replaced the Cedi in 2007. Ghana’s economy rose to prominence in the days of the gold boom and the cocoa era. Ghana has a stable diversified economy rich in hydrocarbon, tourism, solid minerals, etc. The booming economy has
steadied its currency and is regarded as on of Africa’s promising nation.
4. Moroccan Diharm (1 USD – 16.2 Mad)
This Country in North Africa has the 5th largest economy in the continent and also the 4th highest currency in Africa. With a flourishing economy, some of its industries include mining, tourism, automobiles, construction, and textiles.
5. Botswana Pula (1 USD = P 10.90)
The Botswana Pula has an attractive value because the country is the largest producer of diamonds and the trade has transformed it into a middle-income nation. As of 2017 it
is the world’s second largest producer of diamonds after Russia.
6. Zambian Kwacha (1 USD = ZK 13.14)
The Zambian Kwacha is valuable because of the country’s strong economy and relatively stable democracy. The Zambian Kwacha has an attractive value because the country is the largest producer of copper in Africa.
7. Seychellois Rupee (1 USD =SR 13.64)
The Seychellois Rupee is among the highest currencies in Africa because of her strict monetary policy. Furthermore, Seychellois Rupee is highly valuable
due to the country’s market-based economy.
Foreign investments have also played a major role to refurbish the economy and expanded small-scale business like, farming, manufacturing and fishing.
8. South African Rand (1 USD = R 14.87)
Rand is the currency used in South Africa. It is one of the most popular currency in South Africa. In case you aren’t aware, South Africa has the second largest economy in Africa, trailing behind Nigeria.
South Africa is the 8th strongest currency in Africa because of it’s vibrant and competitive economy. South Africa is the only African member of the G-20 economic group.
9. Eritrean Nafka (1 USD – 15.0 ERN)
Eritrean is an island nation in Africa, a remote and small country. The Eritrean Nakfa is the legal tender for Eritrea. Over the years, this country has enjoyed
enjoyed stability because the government does not float the currency.
10. Egyptian Pounds (1 USD – 17.8 EGP)
Egypt is a famous Arab nation that as existence since the biblical times. Well known for its civilization and home to
the ancient pyramids. Egypt is Africa’s third largest economy and one of the most developed in the continent. Its capital Cairo is the second largest city in Africa.