- Business Insider Africa presents a list of African currencies with the highest exchange rates against the dollar during the first quarter of 2022.
- To arrive at this list, we compared the currencies used in all 54 countries in Africa by converting the sum of 1000 in each of these currencies to the dollar.
- Exchange rate has to do with the value of a currency when converted to another currency.
Business Insider Africa periodically publishes a list of the 10 African currencies with the highest exchange rates against the dollar. In this latest installment, we are focusing on Africa’s top currencies as of Q1 2022.
To do this, we have painstakingly compared the currencies used in all 54 countries in Africa by converting the sum of 1000 in each of these currencies to the dollar.
What you should know about exchange rates
Before we go ahead and unveil the top 10 African currencies as of Q1 2022, let’s first have a little discussion about currency valuation and exchange rates, shall we?
The first thing to bear in mind is that exchange rates are hardly constant. This is due to the volatile nature of the foreign exchange market, characterised by unexpected fluctuations in currency prices as a result of different economic factors.
As you may well know, exchange rate basically has to do with the value of a currency when converted to another currency. The US dollar is currently the most used currency during global trades. This is why we used it as our benchmark currency. That said, the top 10 currencies in Africa basically have the highest value when converted to the dollar.
Finally, the quote below by Investopedia explains why exchange rate is an important topic everyone should be interested in.
“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.”
Fair warning: Exchange rates are volatile. So, the figures may have changed as at the time you are reading this article.
10 African currencies with the highest exchange rates against the dollar
- Tunisian dinar:Â TND1000 converted to $334.39 as at the time of publishing this article.
- Libyan dinar:Â LYD1000 converted to $214.51 as at the time of publishing this article.
- Ghanaian cedi:Â GHS1000 converted to $133.81 as at the time of publishing this article.
- Moroccan dirham:Â DH1000Â converted to $103.21 as at the time of publishing this article.
- Botswanan pula:Â BWP1000 converted to $87.33 as at the time of publishing this article.
- Seychellois rupee:Â SCR1000 converted to $69.65 as at the time of publishing this article.
- South African rand:Â ZAR1000 converted to $68.81 as at the time of publishing this article.
- Lesotho loti:Â L1000 converted to $68.81 as at the time of publishing this article.
- Namibian dollar:Â NAD1000 converted to $67.16 as at the time of publishing this article.
- Eritrean nakfa:Â ERN1000 converted to $66.66 as at the time of publishing this article.
Top 10 strongest currencies in Africa against the dollar currently
Here we intimate you with the Top 10 strongest currencies in Africa against the US dollar currently. These are essentially African countries with the strongest exchange rate against the dollar as at the time of compiling this write-up.
Top 10 strongest currencies in Africa against the US dollar
What is an exchange rate?
Exchange rate according to experts overviews could be summarised as the rate at which your country national money is exchanged for another country’s money.
Realistically, if your country is having higher value local currencies, it will surely make your country’s imports less expensive and your country’s exports expensive in international markets thereby enabling the country to get richer in the long run.
A country with a strong exchange rate against the dollar means the ability of your country’s currency purchasing power when converted to the dollar or another foreign currency in international trades.
Currently, the American dollar is the most popular and internationally accepted modality of exchange across the globe and it is the easiest currency you can use to measure exchange transactions all over the world.
HERE ARE THE TOP 10 STRONGEST CURRENCIES IN AFRICA AGAINST THE US DOLLAR CURRENTLY
1. TUNISIA DINAR: Tunisia an African Arab country located in North Africa currently parade the strongest exchange rate against the American dollar. Using 14th November 2021 rates as a yardstick indicates that Tunisia Dinar TND1000 is equivalent to USD353.04.
2. LIBYAN DINAR: Despite being a war-ravaged country with an unsettled national government, Libya a Northern African Arab country proudly parade the second strongest currency in Africa when compared against the American dollar. As at the 14th November 2021, Libya Dinar LYD1000 is equivalent to USD218.80, what’s a surprise.
3. GHANAIAN CEDI: Ghana a not too big West African English speaking country unsurprisingly parade the third strongest national currency in sub-continent Africa. Economically Ghana is assuming a reference point in West Africa due to sound management. As at the 14th November 2021, Ghana GHS1000 is equivalent to USD163.53, according to multiple sources.
4. MOROCCAN DIRHAM: That Moroccan currency is the fourth strongest in Africa doesn’t come as a surprise, in that Morocco in recent years has been persistently successful in managing its national economy. Morocco produces many exportable commodities thereby making its currency stronger by the day. As at the 14th November 2021 Moroccan DH1000 is equivalent to the American dollar USD109.52. Based on multiple sources
5. BOTSWANA PULA:Â Botswana a Southern African country and popularly known for Tourist attractions is equally emerging as an e-commerce centre in the continent is proudly parading the fifth strongest currency in Africa. Currently, the Botswana BWP1000 is equivalent to USD87.18, according to multiple sources.
6. SEYCHELLOIS RUPEE:Â Seychelles an African island country situated in the Indian Ocean northeast of Madagascar usually in the top 10 of positive things in Africa equally parade the sixth strongest currency in Africa. Currently, Seychellois SCR1000 is equivalent to USD73.21, according to multiple sources.
7. ERITREA NAKFA: Eritrea, an Eastern African country situated along the global busiest shipping routes is unsurprisingly parading the seventh strongest currency in Africa. Eritrea makes me believe that the smaller a country is in Africa the better its economic performance. As at the 14th November 2021, ERN1000Â is equivalent to USD66.67. Based on multiple analyses.
8. NAMIBIAN DOLLAR: Namibia a coastal south-west African country sparsely populated but a large country made it to the list of African countries with the strongest currency exchange rate against the dollar. As at the 14th of November 2021, Namibian NAD1000 is equivalent to USD65.31 according to multiple sources.
9. SOUTH AFRICA: South Africa is a country that used to be a reference point in African economic performance, however, due to self-inflicted conflict occasioned by poor governance of the recent past administration, South Africa managed to make it to the 9th position of the list of an African country with the strongest currency. As at the 14th of November, 2021 South African ZAR1000 is equivalent to USD65.24, according to multiple sources.
10. ESWATINI LILANGENI: Eswatini a Southern African country formerly known as Swaziland despite the political upheaval currently ravaging the country proudly parading a national currency that is highly respected and made it to the top ten and almost at par with its big neighbour, South Africa. As at 14th November 2021, Eswatinia SZL1000 is equivalent to USD65.24, according to multiple sources
THE BOTTOM LINE ON THE TOP 10 STRONGEST CURRENCIES IN AFRICA AGAINST THE US DOLLARÂ
In compiling this article we are not oblivious of the fact that currencies exchange rates fluctuate rapidly, what obtained today may be marginally different before the close of the business same day. However, the changes are usually marginal and insignificant to the whole setup, therefore having the knowledge of different countries exchange rates help significantly in today’s world business transactions.
Summarising, the above analysis clearly shows that the Northern and Southern African countries are the powerhouse when talking about the African countries with the strongest currencies in Africa currently. Which is an indication that their economies are performing exceedingly well, equally it is an indication that the countries concerned are producing goods of various uses and values more than they import. Hence they are not importing dependency.
