Last updated on July 31st, 2022 at 07:30 am
The first thing you need to understand about currencies is that they hardly ever have consistent values. This is partially caused by unforeseen fluctuations in exchange rates, which can be advantageous or unfavorable.
As per Investopedia, “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.”
As you are probably aware, an exchange rate is essentially the value of one currency when it is exchanged to another during trade. Due to its widespread use in global trade, the dollar, for instance, is currently the benchmark currency that is most widely recognised. Because of this, the top 10 African currencies are essentially those with the highest values when converted to the dollar, or any other widely used currency for that matter.
Top ten African currencies with the highest exchange rates against the dollar
Tunisian dinar: The strongest and most valued currency in Africa at the moment is this. TND1000 is equivalent to $353.05 as of the time of publication, according to checks by BI Africa.
Libyan dinar: Aside from Tunisia, Libya presently possesses the second-strongest and most valued currency on the continent. LYD1000 will cost you $219.20 in dollars after conversion.
Ghanaian cedi: The currency of this West African nation has the third-highest exchange rate in Africa versus the US dollar. GHS 1000 was exchanged into $164.74. Having said that, it’s crucial to remember that Ghana had its currency re-denominated in 2007 such that 10,000 Cedis were equal to one Ghana Cedi. The re-denomination became required for the sake of statistical convenience, according to the central bank of the nation.
Moroccan dirham: Currently, Morocco possesses Africa’s fourth-strongest currency. BI Africa’s checks revealed that DH1000 becomes $110.46 in the dollar.
Botswanan pula: The fifth-strongest currency on the continent is found in Southern Africa’s Botswana. BWP1000 is equivalent to $87.22. Due to the volatility of exchange rates, this may have altered a little by the time you convert yours.
Seychellois rupee: One of the strongest currencies in Africa is found on this little island nation that is situated in the Somali Sea. SCR1000 was worth 78.35 dollars at the time this report was filed.
Namibian dollar: We obtained $67.16 when we converted NAD1000 to dollars.
Eritrean nakfa: The Eritrean nakfa is the currency used in Eritrea, which is a country in the Horn of Africa. The currency’s rate of exchange with the dollar is the ninth best. As of the comparison, ERN1000 was worth $66.66.
South African rand: One of the continent’s most powerful economies is that of South Africa. Additionally, its currency is among the strongest. ZAR1000 was translated to USD at a rate of $66.63.
Swazi lilangeni: Eswatini (Swaziland), one of the poorest nations on the continent, boasts one of the strongest currencies. SZL1000 was changed to dollars and provided us $66.62.