There is a different currency in every country, which is the reason why every currency has a certain value if you attempt to exchange it for the other ones. It is widely known and believed that the prosperity and development of a country affect its currency value. However, it is a general knowledge that the value of all currencies changes on regular basis.
Meanwhile, a country’s currency tells a lot about its economy and living standards of the people. There is a huge misconception that the biggest and most popular nations often have the best currencies; this is false – especially when Africa is concerned. Some country’s highest currency might not more than 20, whereas some developing country’s lowest value currency starts from 1000 and beyond, this does not mean the latter is stronger than the former. Hence, let see what makes a strong currency.
What determines a Strong Currency.
The best way to judge a currency’s strength is by observing its value in relation to other currencies over many years. Supply, demand, inflation, and other economic factors will cause changes to a currency’s relative price. It is these changes that ultimately determine the strength of a currency. It is important to understand that the rate of international market demand, highly determines how strong a currency is.
There is a great myth that the American Dollar holds the highest monetary value among all currencies in the world. While it is an undeniable fact that the US Dollar is a strong currency and it’s very popular, there are other currencies holding higher values than the US Dollar in the world.
So, as you can see, the strongest currency in the world and the most valuable currency today is not the US dollar, not the Euro nor the British Pound, it is the Kuwaiti Dinar. But lets go back to our main focus of the Article; Africa most valuable currency.
Africa’s Top 5 Most Valuable currencies
Although, Kuwaiti Dinar is the most valuable currency in the world, the US Dollar is a strong global currency with 64% of all foreign exchange transactions worldwide carried out using the USD. Therefore, our analysis today on Africa currency will be based on the present US Dollar exchange rates.
Our review and research on Africa countries currencies gives us these five (5) top countries as one with the most valuable currencies
- Libyan Dinar
- Tunisian Dinar
- Ghanaian Cedi
- Moroccan Dirham
- Botswana Pula
Libyan Dinar (1 USD = LD 1.41)
The Libyan Dinar is the currency of Libya and remains the strongest currency in Africa. The currency code for Dinars is LYD, and the currency symbol is LD. In Libya, the Central Bank of Libya has a programme that only sells a limited number of dollars to its citizens.
Tunisian Dinar (1 USD = DT 2.73)
The Tunisian dinar is the second strongest currency in Africa because Tunisia has in place a well-defined export, import, and conversion policy. TND is subdivided into 1,000 milim, which is a term that comes from the Roman silver coin that was prevalent in the area in 211 B.C. The country maintain a ‘closed currency’ which means currency cannot be exported or imported out and in to the country or convert it into other currencies, thus, enabling the dinar to be among the highest in the continent.
Ghanaian Cedi (1 USD = GH₵ 5.78)
With 5.50 Ghana cedis for $1, the ghanaian currency is the third strongest African currency. Despite all the changes made to the currency, it still holds the number 3 spot in Africa. It is also the only West African country to be in the top 5 list, thus, making Ghana cedis the most valuable currency in west Africa. In 2007, the currency was replaced to Cedi and ever since the GDP of the country has improved drastically.
Moroccan Dirham (1 USD = MAD 9.89)
The Moroccan Dirham is the fourth on this list ranking with MAD 9.89 for $1. This currency is a de facto currency in Western Sahara and although the Dirham is considered a wholly convertible currency, its export is prohibited by law.The Moroccan dirham comes in both coin and banknote forms.
Botswana Pula (1 USD = P 11.66)
The fifth strongest currency in Africa is the Botswana Pula, which exchanges P 10.90 for $1. The Bank of Botswana issues and manages the pula. Pula means “rain” or “blessing” because rain is so scarce in Botswana and is considered valuable. This currency is made up of 100 thebe, which means “shield.”
Botswana is a relatively fast-growing country, with major industries including mining and cattle processing. According to World Bank data, Botswana registered 2.97% annual GDP growth in 2019 and a 2.77% increase in inflation. Above all. the Botswana Pula is an attractive currency because traders trade it on the Johannesburg Stock Exchange, which is the largest stock exchange in Africa.
That’s our list of the top 5 highest and strongest currencies in Africa. As we can see the biggest economies on the continent like Nigeria, South Africa and Kenya, are being beaten by countries one would not expect. It is important to understand that there were almost no cases when the value of a currency was constantly increasing. However, this article is definitive answer to the question of which currency has the highest value in Africa in 2020.