Financial experts say that the stability of a country’s currency further helps to prevent frequent fluctuations in its value, and this provides investors with the necessary confidence to invest in the economy of a country.
Using the dollar as a benchmark, here are the powerful currencies in Africa at the moment.
Although the currency underwent a 12% devaluation in 2015, it is still noted as one of the strongest currency in Africa. One U.S dollar currently exchanges for 10.32 Pula. Botswana’s economy has expanded over the years due to diamond mining which accounts for approximately 85% of export earnings, as well as, tourism-related services, farming, and cattle rearing.
The country was recently ranked as the least corrupt and one of the best places to do business in Africa.
This is considered one of the valuable currencies in southern Africa. It currently exchanges at the rate of 10.0 to the U.S. dollar. Zambia’s economy is largely agrarian with some extra revenue coming in from the tourism sector.
Its lack of economic diversification and dependency on copper as its sole major export makes it vulnerable to fluctuations in the world commodities market.
This is one of the strongest currencies in Africa and currently exchanges at the rate of 9.51 to the U.S. dollar. Morocco’s economy is based on manufacturing, tourism and agriculture. The country has increased investment in its port, transportation, and industrial infrastructure to position itself as a centre and broker for business throughout Africa.
This has been one of the strongest currencies in Africa this year. In March, it was one of the few currencies that appreciated significantly. One U.S. dollar currently exchanges for 4.79 cedis. Experts have attributed the West African country’s currency position to the country’s democratic ideals and its well-managed economy. Other financial analysts say its position is indicative of growth and macroeconomic stability.
Regarded as one of the strongest currencies in Africa, the Tunisian Dinar is currently exchanging at the rate of 2.60 to a U.S. dollar. The country’s economy which came out of the 2008 global financial crisis that resulted in the 2011 Arab Spring revolution, has been based on foreign investment and tourism, and exports of materials such as textiles, food products, and petroleum products.
This remains the strongest currency in Africa, despite the North African country’s recent crisis following the ousting of former leader Muammar Gaddafi in the 2011 Arab spring uprising.
One dollar currently exchanges for about 1.36 Libyan dinars. Analysts argue that the currency, introduced in 1971 to replace the pound, has maintained its status due to the country’s oil reserves and its role as a passage point for African migrants bent on entering Europe.