Top currency in Africa is always associated with Rand, shilling or Naira. Surprisingly none of these currency makes the top five on the African continent.
What makes a currency strong?
Primarily what makes a currency strong, rise or fall is the international demand for that currency. Many people believe that the US dollars and Pounds Sterling are not the strongest in the world but have a great influence over the others. This myth is not true as there are several currencies whose conversion rates are way higher than the USD or the pounds sterling.
A Global Currency
In this article, we will base our ranking based on the exchange rates against the United States dollars. This is because the USD is considered as a global currency. A global currency is one in which can be used for all kind of trade transactions anywhere in the world. For instance the USD is a global currency because 64% of all foreign exchange transactions worldwide is done in with the USD
Africa’s top five currencies
Libyan Dinar (1 USD = LD 1.31)
The Libyan Dinar has been the strongest currency in Africa for a very long time despite the continuous war and violence that has engulfed the country. One of the reasons why this currency continuous to remain strong is accredited to the CBL programme of selling only a limited number of dollars to its citizens.
TUNISIAN DINAR (1 USD= DT2.73)
The TUNISIAN Dinar is strong because Tunisia has a well-placed export, import and conversion policy.
GHANAIAN CEDIS (1USD = GHC 5.78)
Ghana is the ONLY WEST African country on this list and the cedi is more valuable because of the country’s GDP Per capita, which is also the largest in West Africa.
Moroccan Dirham (1USD = MAD 9.20)
The Moroccan dirham is pegged to a currency basket of the euro and US dollar, weighted 60% to the euro and 40% to the US dollar. Two years ago, the central bank began a process of liberalising the Moroccan exchange rate so that it could be more flexible in the face of external market shocks such as the 2008 global recession.
Botswanan pula (1USD = P 11.66)
The pula has been stronger for some years now and the country and political structure is often lauded as a shining example of how an African democracy can work. The Botswanan economy is often regarded as an African success story, and the country enjoys one of the highest human development indexes on the continent. Government revenue is derived from mining, cattle ranching and the services sector.
Furthermore, the pula is one of the strongest currencies in Africa because traders trade it in Johannesburg stock exchange, which is the largest stock exchange in Africa .
Credit : Business Insider
First Step Consultation Group
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