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 strongest currencies in Africa in 2023.
The strongest currencies in Africa are the most expensive when compared to the United States dollar (USD). The money that yields the smallest currency return for 1 USD is the strongest. Ironically, the biggest and most popular nations do not necessarily have the best currencies. 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.
The strength of a country’s currency is determined by various factors including the economic policy, nominal GDP per capita, inflation rate, and economic stability. Strong currency accounts for cheaper importation of goods and trading at higher levels and reduces its volatility in the forex market.
Top 10 Strongest Currencies in Africa in 2023.
Below are the top 10 strongest currencies in Africa in 2023 when compared with the US dollar:
- Tunisian Dinar
- Libyan Dinar
- Ghana Cedi
- Moroccan Dirham
- Botswana Pula
- Seychellois Rupee
- South African Rand
- Eritrean Nafka
- Namibian dollar
- Zambian Kwacha
It is now time to briefly look at the top 10 strongest African currencies…
10. Zambian Kwacha ($1=18.44 ZMW)
The Zambian Kwacha is the 10th 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 kwacha as it is a highly-volatile metal. 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.
As of the time of writing this post, 1 US dollar is equivalent to 18.44 ZMW, making it the ninth most valuable currency in Africa.
9. Namibian Dollar ($1 = 15.84 NAD)
The Namibian dollar is the 9th strongest currency in Africa, according to the World Bank. The Namibian Dollar has a value of 16.82 to the US dollar, it is subdivided into 100 cents. 1 USD is currently worth 16.82 NAD. A set exchange rate links the Namibian Dollar and the South African Rand. In light of this, 1 NAD always equals 1.0000 ZAR1.
8. Eritrean Nakfa ($1 = 15 ERN)
Eritrean Nakfa is the official legal tender in Eritrea and is the eighth strongest currency in Africa in 2023. 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.
7. South African Rand ($1 = 17.12 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 strongest currency in Africa in 2023 and is exchanged at 1 US dollar = 17.12 ZAR
6. Seychellois Rupee ($1 =13.7009 SCR)
Seychelles is the smallest country in Africa with a very strong economic policy which greatly contributes to the strength of the Seychellois Rupee. The country 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 2023. It is issued by the Central Bank of Seychelles and is subdivided into 100 cents. The Seychellois rupee is the sixth strongest currency in Africa and stands at 13.7009 SR = 1 US dollar.
5. Botswana Pula ($1= 12.75 BWP)
The Botswana Pula is the fifth strongest currency in Africa. The top rating of this currency is attributed to the relative stability of democracy in the country and the country’s strong economic policy. The pula which was introduced on 23 August 1976, has denominations like 200 pula, 100 pula, 50 pula, 10 pula, and 20 pula.
Pula trades in the South Africa Stock Market, Africa’s largest Stock Market.
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4. Moroccan Dirham ($1 =10.14 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 10.14. i.e., 1 USD = 10.14 MAD, making it the fourth strongest currency in Africa.
3. Ghanaian Cedi ($1= 6.16 GHC)
The Ghanaian Cedi is third on the list of the strongest currencies in Africa and is also the strongest currency in West Africa. Cedi is the currency of Ghana. It is the fourth historical currency of Ghana and was introduced in 1965 to replace the Ghanaian pounds, shillings, and pence.
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The Cedi has a peg with the US dollar, which makes it one of the strongest currencies in Africa; 1 GHC = 0.16 USD, which translates to 1$ = 6.16 GHC
However, at the time of writing this post, 1 US dollar is equivalent to 12.01 GHC. Ghanaian cedi is the third most valuable currency in Africa thanks to the country’s strong GDP per capita. Cedis is the only currency in West Africa to make the list of the top 10 strongest currencies in Africa.
2. Libyan Dinar ($1 = 4.78 LD)
The Libyan dinar is the second strongest currency in Africa in 2023. It was introduced in September 1971 by the Central Bank of Libya which also regulates the banking system of Libya.
The exchange rate of the 1 USD to Libyan Dinar is 4.78 LD, earning the currency second place behind Tunisian Dinar on the list of the strongest currencies in Africa. Libya has the 10th largest proven oil reserve in the world and its economy is largely driven by oil. The relatively low inflation rate and high GDP per capita strengthen the Libyan dinar’s value.
1. Tunisian Dinar ($1 = 3.07 TND)
The Tunisian dinar is the strongest currency in Africa. Dinar 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. Most of the economic growth is from the exportation of clothing, textiles, Agri products, and mechanical goods. 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. The exchange rate of the Tunisian Dinar to USD is 3.07.