Currency is a medium of exchange and is accepted as a means of payment for goods and services rendered. There are 54 countries in Africa with various currencies in banknotes or coins, depending on the denomination. In this article, we present the list of the top 10 most valuable currencies in Africa in 2022.
Whereas some of the currencies in Africa can stand at par with the US dollar, others are extremely weak when compared to the dollar or pound sterling. In this article, we shall be comparing the different currencies in Africa with the US dollar, the world currency.
As stated before, the strongest currencies in Africa are the most expensive when compared to the United States dollar (USD). This means that the money that yields the smallest currency return for 1 USD is the strongest.
The strength of a country’s currency is determined by various factors. These include the economic policy, nominal GDP per capita, inflation rate, and economic stability. Further, there are several implications for countries having a strong currency. Strong currency accounts for cheaper importation of goods and trading at higher levels and also reduces its volatility in the forex market.
It is interesting to note that the biggest and most popular nations do not necessarily have the best currencies – both in Africa and in the world at large. This can be seen in countries like Nigeria, one of the most popular and biggest countries in Africa but with one of the weakest currencies.
Top 10 Most Valuable Currencies in Africa in 2022.
Below are the top 10 most valuable currencies in Africa in 2022:
- Tunisian Dinar
- Libyan Dinar
- Ghana Cedi
- Moroccan Dirham
- Botswana Pula
- Zambian Kwacha
- Seychellois Rupee
- South African Rand
- Eritrean Nafka
- Egyptian Pound
1. Tunisian Dinar ($1 = 2.9986142 TND)
Tunisian dinar is the most valued currency in Africa. It is the official currency in Tunisia and was introduced in 1960 to replace the franc. The dinar is issued by the Central Bank of Tunisia which also regulates the banking system of Tunisia.
Tunisia is a country in the Maghreb region of North Africa and is the 35th largest country on the continent. The Tunisian dinar is strong thanks to the prudent economic and fiscal planning of the country which has resulted in the sustained growth of the currency.
Most of the economic growth is from the exportation of clothing, textiles, Agri products, mechanical goods, phosphates and chemicals, hydrocarbons, and electrical equipment.
2. Libyan Dinar ($1 = 4.72 LD)
The Libyan dinar is the second most valuable currency in Africa in 2022. It was introduced in September 1971 by the Central Bank of Libya which also regulates the banking system of Libya.
The Libyan dinar has for some time now, been top-rated as one of the strongest currencies in Africa thanks to the strict monetary policy introduced by the Central Bank of Libya. Presently, 1 US dollar is equivalent to 4.74 LD, making it the second most valued currency in Africa behind the Tunisian dinar.
Libya is a country in the Maghreb region in North Africa and is the fourth largest country in Africa. Libya has the 10th largest proven oil reserve in the world.
The oil sales greatly raised the country’s dollar earnings which further increases the strength of the Libyan dinar. Furthermore, the relatively low inflation rate and the high GDP per capita strengthen the Libyan dinar.
3. Ghanaian Cedi ($1= 7.41554 GHS)
The Ghanaian Cedi is the third most valuable currency in Africa and the most valuable currency in West Africa. Cedi is the currency of Ghana. It is the fourth historical currency of Ghana and was introduced in 1965 to replace the Ghanaian pounds, shillings, and pence.
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The Cedi has a peg with the US dollar, which makes it one of the strongest currencies in Africa; 1 GHC = 0.16 USD, which translates to 1$ = 6.16 GHC
However, at the time of writing this post, 1 US dollar is equivalent to 7.42 GHS. Cedis is not only the most valuable currency in West Africa, but it is also the only currency in the region to make the list of the top 10 most valuable currencies in Africa.
Ghanaian cedi is the third most valuable currency in Africa thanks to the country’s strong GDP per capita and the Central Bank of Ghana’s monetary policy program.
4. Moroccan Dirham ($1 =9.82 MAD)
The Moroccan dirham is Africa’s fourth most valuable currency. Located in the Maghreb region of North Africa, Morocco has one of the largest economies on the continent.
The dirham was introduced in 1960 to replace the franc. The inflation rate of the country is relatively low and this contributes to the strength and stability of the dirham.
Dirham’s exchange rate against the US dollar is 9.82. i.e., 1 USD = MAD 9.82, making it the fourth most valuable currency in Africa.
5. Botswana Pula ($1= pula 11.64)
The Botswana Pula takes the number fifth position on our list of the top 10 most valuable currencies in Africa. The top rating of this currency is easily attributed to the relative stability of democracy in the country and the country’s strong economic policy.
The high GDP per capita and relatively low inflation rate also contribute to the strength of the currency. Pula trades in the South Africa Stock Market, Africa’s largest Stock Market.
Pula was introduced in 1976 to replace the South African Rand.
6. Seychellois Rupee ($1 =14.42 SCR)
Seychelles is the smallest country in Africa with a very strong economic policy which greatly contributes to the strength of the Seychellois Rupee. Seychelles boasts the highest nominal per capita GDP of any African nation and major exports are processed fish and non-fillet frozen fish.
The Seychellois rupee is ranked the sixth most valuable currency in Africa in 2022. It is issued by the Central Bank of Seychelles and is subdivided into 100 cents. The Seychellois rupee is the seventh strongest currency in Africa and stands at SR 14.42 = 1 US dollar.
7. South African Rand ($1 =15.15 ZAR)
South Africa is the highest producer of gold in Africa and the price of gold greatly determined the value of the rand over the years. the rand is issued by the South African Reserve Bank (Central Bank) and was introduced in 1961 to replace the South African pound as the legal tender.
The rand is highly valued thanks to the strong economic policy, relatively low inflation, gold exportation, and the high GDP per capita of the country.
South African rand is the seventh-most valuable currency in Africa in 2022 and is exchanged at 1 US dollar = 15.15 ZAR
8. Eritrean Nakfa ($1 = 15 ERN)
Eritrean Nakfa is the official legal tender in Eritrea and is the eighth strongest currency in Africa in 2022. It was introduced in 1997 to replace the Ethiopian birr at par. The Nafka is divided into 100 cents and is issued by the Central Bank of Eritrea.
One of the contributors to the strength of the currency is that the government does not float the Nafka. Rather, the currency is pegged at a fixed exchange rate with the US dollar.
The country also has a relatively low inflation rate and a high GDP per capita. The Nafka is pegged to the US dollar at a fixed rate of 1 US dollar = ERN 15.
9. Zambian Kwacha ($1=17.40 ZMW)
When it comes to the largest exporter of copper in Africa, Zambia is second to none. Together with high GDP per capita and relatively low inflation rate, the strong economic policy of the country accounts for the strength of the Zambian Kwacha.
Zambian kwacha is the 9th most valuable currency in Africa and was introduced in 1968 to replace the Zambian Shillings and Pounds. The volatility of copper greatly affects the strength of the currency.
As of the time of writing this post, 1 US dollar is equivalent to Zk 17.40, making it the ninth most valuable currency in Africa.
10. Egyptian Pound ($1 = 18.46 Egyptian pound)
The Egyptian pound is the last currency in our list of the top 10 most valuable currencies in Africa in 2022. The currency was introduced in 1834 to replace the Egyptian piastre.
The high nominal GDP per capita as well as the government reduction in interest rates to attract local and foreign investors greatly influence the strength of the Egyptian pound.
1 US dollar is equivalent to E£ 18.46