The strength of a country's currency determines how lots of its economic indicators fare. If the currency is weak, it becomes less valuable. A vulnerable currency comes crushing when matched against a global currency like the United States dollar.
Value of a currency is also known to be an unstable phenomenon. No currency is static. It rises and falls depending on internal and external factors that might affect a country.
Especial in Africa, it is a big deal when a country's currency stabilizes for long period of time. Judging the value of a currency is done by matching it with a global currency.
A global currency is one that can be used for all kinds of trade transactions anywhere in the world. An example of a global currency is the US Dollar because 64% of all foreign exchange transactions worldwide are carried out using the USD.
To determine the value, the currency' s foreign exchange is checked as against a global currency. How it performs over a period of time in terms of its stability.
Africa business insider did just that and has come out with the below top 5 valuable currencies in African.
1. Libyan Dinar (1 USD = LD 1.31):
The Libyan Dinar has been the strongest currency in Africa for a very long time despite the continuous war and violence that has engulfed the country. In Libya, the CBL has a programme that only sells a limited number of dollars to its citizens.
2. Tunisian Dinar (1 USD = DT 2.73)
The Tunisian Dinar is strong because Tunisia has in place a well-defined export, import, and conversion policy.
3. Ghanaian Cedi (1 USD = GHc 5.78)
Against all odds, Ghana is the only West African country on this list and the Cedi is more valuable because of the country’s GDP per capita, which is also the largest in West Africa.
4. Moroccan Dirham (1 USD =MAD 9.20)
The Moroccan dirham is pegged to a currency basket of the euro and US dollar, weighted 60% to the euro and 40% to the US dollar.
Two years ago, the central bank began a process of liberalizing the Moroccan exchange rate so that it could be more flexible in the face of external market shocks, such as the 2008 global recession.
5. Botswana Pula (1 USD = P 11.66):
The Pula has been stronger for some years now and the country's economy and political structure is often lauded as a shining example of how an African democracy can work.
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