Top 10 strongest currencies in Africa 2022

African currency was originally formed from basic items, materials, animals and even people available in the locality to create a medium of exchange. This started to change from the 17th century onwards, as European colonial powers introduced their own monetary system into the countries they invaded. Top 10 strongest currencies in Africa 2022

As African countries achieved independence during the 20th century, some retained the new denominations that had been introduced, though others renamed their currencies for various reasons. Today, inflation often creates a demand for more stable (but forbidden) foreign currency, while in rural areas the original bartering system is still in widespread usage. As of 1 March 2019, the Libyan dinar (LYD) has the strongest currency in Africa. Top 10 Strongest currencies in Africa 2022

Pre-colonial era

In pre-colonial times, many objects were sometimes used as currency in Africa. These included shells, ingots, gold (gold dust and gold coins (the Asante)), arrowheads, iron, salt, cattle, goats, blankets, axes, beads, and many others. In the early 19th century a slave could be bought in West Africa with manilla currency; multiples of X-shaped rings of bronze or other metal that could be strung on a staff. Top 10 weakest currencies in Africa 2021

Colonial era

During colonial times (roughly from 1680 to 1990) the respective colonial powers introduced their own currencies to their colonies or produced local versions of their currencies. These included the Somali shilling; the Italian East African lira; and the African franc (in Francophone countries). Many post-colonial governments have retained the name and notional value unit system of their prior colonial era currency. For example, the British West African pound was replaced by the Nigerian pound, which was divided into shillings, before being replaced by the naira.

Modern day

A different trend was seen when the predominant foreign power relationship changed, causing a change in the currency: the East African rupee (from long-term trade with Arabia and India) was replaced by the East African shilling after the British became the predominant power in the region. Other countries threw off the dominant currency of a neighbour: the Botswana pula replaced the South African rand in Botswana in 1976. Some countries have not changed their currency despite being post-colonial, for example Uganda retains the Ugandan shilling. strongest currencies in Africa 2022

Here is a List of 10 Highest Currencies in Africa 2022

1. Tunisian Dinar

• Currency Name: Dinar
• Code: TND
• Current Exchange Rate: $1 = 3.05 د.ت

The dinar (Arabic: دينار, French: Dinar, ISO 4217 currency code: TND) is the currency of Tunisia. It is subdivided into 1000 milim or millimes (ملّيم). The abbreviation DT is often used in Tunisia, although writing “dinar” after the amount is also acceptable (TND is less colloquial, and tends to be used more in financial circles); the abbreviation TD is also mentioned in a few places, but is less frequently used, given the common use of the French language in Tunisia, and the French derivation of DT (i.e., Dinar tunisien). strongest currencies in Africa 2022

2. Libyan Dinar

• Currency Name: Dinar
• Code: LYD
• Current Exchange Rate: $1 = 4.82 ل.د

The dinar (Arabic: دينار dīnār) is the currency of Libya. Its ISO 4217 code is “LYD“. The dinar is subdivided into 1,000 dirham (درهم). It is issued by the Central Bank of Libya, which also supervises the banking system and regulates credit. Libyan Dinar has always been a very stable currency, even when political unrest swept Libya because of internal problems back in 2011. Today, the Libyan Dinar is still one of the most valued African currencies. strongest currencies in Africa 2022

It was introduced in September 1971 and replaced the pound at par. The currency was pegged to the special drawing rights at a rate of 2.80 SDRs per dinar. In 1972, the Libyan Arab Foreign Bank was established to deal with overseas investment.

On February 1973, the dinar was pegged to the U.S. dollar at a rate of 0.29679 dinar per dollar (1 dinar = US$3.37), which was maintained until 1986. The peg was switched to the special drawing rights on 18 March 1986, with 1 dinar = 2.80 SDRs. On 1 May 1986, the dinar was allowed to trade in a 7.5% range of 2.80 SDRs. This range was expanded several times.

The currency started to devalue gradually relative to the U.S. dollar in the mid-1990s, reaching a value of US$1.55 in 2001. The dinar was devalued by 50% to US$0.77 in 2002. Ali Mohammed Salem, deputy governor of Central Bank of Libya stated the exchange rate of Libyan dinar would be pegged to special drawing rights for one to three years, according to an interview to Reuters on 27 December 2011. On 3 January 2021, the dinar was devalued to US$1 = 4.48 dinars for all transactions following exchange rate unification, closing the gap between the official and black market exchange rates.

3. Ghanaian Cedi

• Currency Name: Cedi
• Code: GHC
• Current Exchange Rate: $1 = GH₵ 6.16

The Ghanaian cedi (/ˈsiːdiː/ SEE-dee) (currency sign: GH₵; currency code: GHS) is the unit of currency of Ghana. It is the fourth historical and only current legal tender in the Republic of Ghana. One cedi is divided into one hundred pesewas (Gp). The GPD of Ghana is the largest in West Africa, contributing to the Cedi is one of the highest currencies in Africa.

After independence Ghana separated itself from the British West African pound, which was the currency of the British colonies in the region. The new republic’s first independent currency was the Ghanaian pound (1958-1965). In 1965, Ghana decided to leave the British colonial monetary system and adopt the widely accepted decimal system. The African name Cedi (1965-1967) was introduced in place of the old British pound system. Ghana’s first President Dr. Kwame Nkrumah introduced Cedi notes and Pesewa coins in July 1965 to replace the Ghanaian pounds, shillings and pence. The cedi bore the portrait of the President and was equivalent to eight shillings and four pence (8s 4d), i.e. one hundred old pence, so that 1 pesewa was equal to one penny. strongest currencies in Africa 2022

After the February 1966 military coup, the new leaders wanted to remove the face of Nkrumah from the banknotes. The “new cedi” (1967–2007) was worth 1.2 cedis, which made it equal to half of a pound sterling (or ten shillings sterling) at its introduction. Decades of high inflation devalued the new cedi, so that in 2007 the largest of the “new cedi” banknotes, the 20,000 note, had a value of about US$2. The new cedi was gradually phased out in 2007 in favor of the “Ghana cedi” at an exchange rate of 1:10,000. By removing four digits, the Ghana cedi became the highest-denominated currency unit issued in Africa. It has since fallen to about 20% of its original purchasing power when the currency was redenominated.

4. Moroccan Dirham

• Currency Name: Dirham
• Code: MAD
• Current Exchange Rate: $1 = DH 8.99

The Moroccan dirham (Arabic: درهم, romanized: dirham, Moroccan Arabic: درهم, romanized: drhm; Berber languages: ⴰⴷⵔⵀⵎ, romanized: adrhm; sign: DH; code: MAD) is the official monetary currency of Morocco. It is issued by the Bank Al-Maghrib, the central bank of Morocco. One Moroccan dirham is subdivided into 100 centimes (cents).

Moroccan Dirham is an ancient currency in Africa as it has been around for more than 100 years. It is the official currency of Morocco and its neighboring countries in the Western Sahara region.

In 1960, silver 1 dirham coins were introduced. These were followed by nickel 1 dirham and silver 5 dirham coins in 1965. In 1974, with the introduction of the santim, a new coinage was introduced in denominations of 1, 5, 10, 20 and 50 santimat and the 1 and 5 dirham coins. The 1 santim coins were aluminium, the 5 up to 20 santimat were minted in brass, with the highest three denominations in cupro-nickel. New cupro-nickel 5 dirham coins were added in 1980 and changed to a bi-metal coin in 1987. The bi-metal coins bear two year designations for the issue date—1987 in the Gregorian calendar and the 1407 in the Islamic calendar.

The 1 santim was only minted until 1987 when new designs were introduced, with a 1⁄2 dirham replacing the 50 santimat without changing the size or composition. The new 5 dirham coin was bimetallic, as was the 10 dirham coin introduced in 1995. Cupro-nickel 2 dirham coins were introduced in 2002. In 2012, a new series of coins has been issued, with the 5 and 10 dirham coin utilizing a latent image as a security feature.

5. Botswana Pula

• Currency Name: Pula
• Code: BWP
• Current Exchange Rate: $1 = 11.32P

The pula is the currency of Botswana. It has the ISO 4217 code BWP and is subdivided into 100 thebe. Pula literally means “rain” in Setswana, because rain is very scarce in Botswana—home to much of the Kalahari Desert—and therefore valuable and a blessing. The word also serves as the national motto of the country.

A sub-unit of the currency is known as thebe, or “shield”, and represents defence. The names were picked with the help of the public. The pula was introduced on 23 August 1976, subsequently known as “Pula Day”, replacing the rand at par. One hundred days after the pula was introduced, the rand ceased to be legal tender in Botswana. strongest currencies in Africa 2022

6. Seychellois Rupee

• Currency Name: Seychellois Rupee
• Code: SCR
• Current Exchange Rate: $1 = SRe 12.92

Seychelles is an Indian Ocean country, and it has one of the highest currencies in Africa in terms of value, which is the Seychellois Rupee. The rupee is the currency of the Seychelles. It is subdivided into 100 cents. In the local Seychellois Creole (Seselwa) language, it is called the roupi and roupie in French. The international currency code is SCR. The abbreviation SR is sometimes used. By population, Seychelles is the smallest country to have an independent monetary policy. Several other currencies are also called rupee.

The British Legislative Council authorized the establishment of a Board of Commissioners of Currency through the Paper Currency Ordinance of 1914, which was enacted by C. R. M. O’Brien, the Governor of the Colony of the Seychelles on 10 August 1914. In 1914, the government produced emergency issues of notes for 50¢, ₨.1/-, ₨.5/- and ₨.10/-.

Standard issue notes began to be issued in 1918, with notes for 50¢ and ₨.1/-, followed by ₨.5/-, ₨.10/- and ₨.50/- in 1928. The 50 cent and ₨.1/- notes were issued until 1951 and phased out in favor of the coins. ₨.20/- and ₨.100/- notes were first introduced in 1968, whilst the ₨.5/- note was replaced by a coin in 1972.

7. South African Rand

• Currency Name: Rand
• Code: ZAR
• Current Exchange Rate: $1 = R 15.27

Currently, the Rand is one of the strongest currencies in Africa, and this is due to recent economic growth. South Africa’s GDP can support this is growing at a rate of 4.6% annually. strongest currencies in Africa 2022

The South African rand, or simply the rand, (sign: R; code: ZAR) is the official currency of the Southern African Common Monetary Area: South Africa, Namibia (alongside the Namibian dollar), Lesotho (alongside the Lesotho loti) and Eswatini (alongside the Swazi lilangeni). It is subdivided into 100 cents (sign: “c”).

The South African rand is legal tender in the Common Monetary Area member states of Namibia, Lesotho and Eswatini, with these three countries also having their own national currency (the dollar, the loti and the lilangeni respectively) pegged with the rand at parity and still widely accepted as substitutes. The rand was also legal tender in Botswana until 1976, when the pula replaced the rand at par.

8. Eritrean Nakfa

• Currency Name: Nakfa
• Code: ERN
• Current Exchange Rate: $1 = Nfk 15.00

Eritrea is a country located in the horn of Africa with one of the most important currencies in Africa, the Nakfa, which is its official currency. Eritrea’s main currency value is that the country has a fixed exchange rate. This makes it one of the highest currencies in Africa.

The nakfa (ISO 4217 code: ERN; Tigrinya: ናቕፋ naḳfa, Arabic: ناكفا nākfā) is the currency of Eritrea and was introduced on 15 November 1998 to replace the Ethiopian birr at par. The currency takes its name from the Eritrean town of Nakfa, site of the first major victory of the Eritrean War of Independence. The nakfa is divided into 100 cents.

The nakfa is pegged to the US dollar at a fixed rate of US$1 = ERN 15. At earlier times, it was officially pegged at US$1 = ERN 13.50. The currency is not fully convertible, so black market rates available on the streets typically offered a rate of 15 nakfas per dollar.

Between 18 November and 31 December 2015, the Bank of Eritrea began replacement of all nakfa banknotes. The banknote replacement initiative was designed to combat counterfeiting, the informal economy but primarily Sudanese human traffickers who had accepted payments in nakfa banknotes in exchange for transporting would-be migrants primarily to Europe. A consequence of this was substantial amounts of the country’s currency existed in vast hoardings outside of Eritrea.

The plan to replace the country’s currency was top secret and designed to prevent human traffickers bringing their funds back in time to exchange for the new banknotes. On 1 January 2016 the old nakfa banknotes ceased being recognized as legal tender, rendering external stockpiles of currency worthless.

The current series of banknotes is the artwork of an Afro-American banknote designer, Clarence Holbert, and printed by German currency printer Giesecke & Devrient.

9. Egyptian Pound

• Currency Name: Egyptian Pound
• Code: EGP
• Current Exchange Rate: $1 = E£ 15.71 or ج.م 15.71

The Egyptian Pound is the official currency of Egypt, and it has been in the country for close to 200 years. Egypt is a populous country in Africa located Northeast of Africa. Cairo, the biggest city in Africa, makes up 2/3rds of the country’s population and GDP.

The pound (Egyptian Arabic: جنيه مصرى Genēh Maṣri [ɡeˈneː(h) ˈmɑsˤɾi]; sign: £E, or L.E. in Latin, ج.م in Arabic; ISO code: EGP) is the official currency of Egypt. nIt is divided into 100 piastres, or ersh (قرش [ʔeɾʃ]; plural قروش [ʔʊˈɾuːʃ]), or 1,000 milliemes (مليم  [mælˈliːm]; French: millième). In Latin script the Egyptian pound is often abbreviated to “LE” or “L.E.” (livre égyptienne in French), “£E” is commonly used when the “£” sign is available. The Arabic name genēh [ɡeˈneː(h)] is derived from the guinea unit of account in sterling, which was close in value to 100 piastres at the end of the 19th century. strongest currencies in Africa 2022

10. Zambian Kwacha

• Currency Name: Kwacha
• Code: ZMW
• Current Exchange Rate: $1 = ZK 17.20

Zambia is located in Southern Africa, and the Kwacha is its official currency. The Kwacha has been with Zambia for more than 54 years since gaining independence from Great Britain and replacing the Zambian Pound. The Kwacha (ISO 4217 code: ZMW) is the currency of Zambia. It is subdivided into 100 Ngwee. The name kwacha derives from the Nyanja, Bemba, and Tonga language word for “dawn”, alluding to the Zambian nationalist slogan of a “new dawn of freedom”. The name ngwee translates as “bright” in the Nyanja language.

In 1968, bronze 1 and 2 ngwee and cupro-nickel 5, 10 and 20 ngwee were introduced. These coins all depicted president Kenneth Kaunda on the obverse and flora and fauna on the reverse. A twelve sided 50 ngwee coin was introduced in 1979 to replace the 50 ngwee note and featured commemorative FAO themes.

In 1982, copper-clad-steel replaced bronze in the 1 and 2 ngwee. These two were struck until 1983, with production of the 5 and 10 ngwee ceasing in 1987 and that of the 20 ngwee in 1988. Nickel-brass 1 kwacha coins were introduced in 1989 and depicted “Bank of Zambia” on the edges. The period of circulation for this coin was brief as inflation rates skyrocketed.

In 1992, a new, smaller coinage was introduced consisting of nickel-plated-steel 25 and 50 ngwee and brass 1, 5 and 10 kwacha. The coins depict the national crest on the obverse and native fauna on the reverse. The coins were issued only one year and then discontinued as the economic crisis dragged on.

All these coins, both from the older and newer series still remain legal tender. However, the value of the metal in the coins is worth more than their irrelevant face value, so they are never seen or used in normal trade. The only place coins might be seen today is when they are sold as souvenirs to tourists.

On January 1, 2013, new coins were introduced, namely for 5, 10, 50 ngwee and 1 kwacha.

Annual growth of GDP per capita, 2020

List of Strongest Currencies in Africa Overview

Here is a table with all the African currencies, from the strongest to the weakest: