Top 20 strongest currencies in Africa in 2021

African currencies have evolved from barter systems to paper money. In the foreign exchange market, investors have recently begun to trade currencies, as some are no longer subject to fluctuations in commodity supply and demand.

Some of the strongest currencies in Africa come from commodity-rich countries. Thus, their currencies are strong because of the rising prices of their commodities. African currencies are only strong when they are worth more than other countries.

Top 20 des monnaies les plus fortes en Afrique en 2021

Having a strong currency means that it becomes cheaper to import goods. It also means that it trades at historically higher levels than before. When a country's medium of exchange is strong, it reduces its volatility in the foreign exchange market.

Here are the strongest currencies in Africa in 2021

1. Libyan Dinar (1 USD = 1.41 LYD)

Top 20 des monnaies les plus fortes en Afrique en 2021

The Libyan dinar has always been the strongest currency in Africa. It has been gaining strength recently due to the strict monetary policy implemented by the country's central bank. In Libya, the central bank has a program that sells only a limited number of dollars to its citizens. In addition, its strength has steadily increased after the reopening of previously blocked ports and oil fields. This has increased the country's dollar revenues for oil sales.

2. Tunisian Dinar (1 USD = 2.87 TND)

Tunisia was under the French colony and used the French franc as its currency. But in 1960, the country replaced the franc with the dinar. The country's monetary policy, where it is illegal to export or import dinars or convert them into other currencies, has allowed the dinar to be among the strongest currencies in Africa. In addition, the country is an export-oriented economy, with agricultural and oil exports accounting for a significant portion of its GDP.

3. Ghanaian Cedi (1 USD = 5.49 GH₵)

For many years, Ghana's currency was highly volatile until the Bank of Ghana replaced the Cedi in 2007. Today, government spending programs and employment growth have kept the currency strong. In addition, the Cedi is more valuable because of the country's GDP per capita, which is the highest in West Africa.

Top 20 des monnaies les plus fortes en Afrique en 2021

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4. Moroccan dirham (1 USD = 9.89 MAD)

The Moroccan dirham is the de facto medium of exchange in the Western Sahara region. Its de facto status makes it one of the strongest currencies in Africa. Although the MAD remains uncontrolled, the law prohibits its export.

5. Botswana Pula (1 USD = 10.90 P)

The Botswana Pula is valuable because of the country's strong economy and relatively stable democracy. In addition, it is an attractive currency because traders trade it on the Johannesburg Stock Exchange, which is the largest exchange in Africa. Prior to 1976, the exchange rate and valuation of the Pula was on the same basis as the Rand.

6. Zambian Kwacha (1 USD = 13.14 ZK)

The Zambian Kwacha has an attractive value because the country is the largest producer of copper in Africa. Copper is a commodity. This means that the currency can experience some volatility depending on the movement of commodity prices in the global copper market. Thus, when prices are stable, the country enjoys a valuable currency.

7. Seychelles Rupee (1 USD = 13.64 SR)

The Seychelles rupee is the legal currency of Seychelles. It is one of the strongest currencies on the continent due to the country's strict monetary policy. In addition, the SR is more valuable because of the country's market economy. Foreign investment has also contributed to the rehabilitation of the economy and the development of small-scale manufacturing, agriculture, and fishing. This has helped to diversify Seychelles' GDP, hence the value of its currency.

8. South African Rand (1 USD = 14.87 R)

For many years, the price of gold determined the value of the rand, as it was the country's main export. But changes in the world over the years have determined the trajectory of the Rand's price.

Top 20 des monnaies les plus fortes en Afrique en 2021

9. Eritrean Nakfa (1 USD = 15.00 ERN)

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The Eritrean Nakfa is the legal tender in Eritrea. It has enjoyed stability over the years, as the country's government does not float the currency. It prefers the stability of a fixed exchange rate.

10. Egyptian Pound (1 USD = 16.30 EGP)

The Egyptian pound has increased in value over the years due to its unofficial use in Sudan and the Gaza Strip. In addition, the Egyptian pound has increased in value over the years.