What position is the South Africa rand on the list of 15 strongest currencies in Africa?
With 2020 marking the genesis of a new financial year, the South African rand ranking plays a significant role in determining both purchasing and selling power. In terms of Mzansi's rand economic performance, we compare the ZAR strength in order to figure out the answer to the question "what is the strongest currency in Africa" and the position of ZAR.
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Just like all world currencies, the South African rand is usually compared to the US dollar in order to evaluate its performance in the international market.This is based on the dollar’s stability to strength ratio.
Rand in top 10 African strongest currencies
Based on the 2019-2020 ranking, the South African rand stably seats at position 8 in the top 15 list of strongest currencies in African countries. ZAR is exchanged with the US dollar at $1 to about 14.4094ZAR. Rand is divided in units of 100 cents with each unit bearing the ZAR reference code.
Based on Mzansi's history, the current ZAR was adopted as the replacement of the latter “South African pound”. Does it make you wonder, why “ZAR” and not “ SAR”? The reason is based on the existence of “SA” value code allocated to the Saudi Arabian currency before the change from the pound.
What are the top 15 strongest currencies in Africa?
Unless you are conversant with various currencies in Africa, you hardly know which one is stronger. Here are the top coins you should have in mind.
1. Libyan dinar
What is the strongest currency in Africa? It is the dinar that Libya uses. The Libyan dinar often goes hand in hand with the US dollar, both in terms of purchasing power and strength. One US dollar is about 1.38 Libyan dinars. At this rate, it is among the leading currencies in the world too.
2. Tunisian dinar
The Tunisian dinar has grown to be one of the steadiest African currencies too. A dollar goes for about 2.813 Tunisian dinars. One of the most significant contributors to this strength is the policy that renders it illegal to export, import or exchange the dinar with other currencies. Besides, being an export-oriented economy, chances of inflation are meagre, making it easier to maintain such integrity.
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3. Ghanaian cedis
One of the most striking currencies in Africa will always be Ghana’s cedis. Besides, it is among the few countries from both west and east Africa to make it on the list. One US dollar is equivalent to about 5.4 Ghana cedis.
4. Morrocan dirham
The dirham is Morroco’s currency. It trades with the US dollar at about 9.8. It would be best if you also kept in mind that it remains illegal to export the dirham.
5. Botswana Pula
Botswana is among the African countries that pride themselves on stable economic conditions and credible democracies. With this, their pula has come out as one of the most important currencies within the region. 10.9 pulas will be enough to get you a dollar.
6. Zambian Kwacha
The Zambian kwacha has proven to be relatively stable. However, you will note that such strength is often drawn from the volatility of their main economic commodity, copper. The more volatile the price of copper is, the more negatively the kwacha is affected. A dollar exchanges with about 13.15 kwachas.
7. Seychellois rupee
Seychelles’ rupee is not only valuable but also stable. One USD will often make you about 13.65 rupees.
8. South African rand
As mentioned earlier, the South African currency ranks eighth. A US dollar goes for about 14.38 rands.
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9. Eritrean nakfa
The nakfa in Eritrea has remained steady for a relatively long time. Besides, the government hardly floats this currency. Fifteen nakfas will give you a US dollar.
10. Egyptian pound
With its presence in the Gaza strip as well as Sudan, the Egyptian pound has become quite popular in the recent past. A US dollar is about 16.35 Egyptian pounds.
11. Sao Tome’s Dobla
With the influx of economic activities in Sao Tome, the influence of the country’s currency has grown so much. Significant investments have ensured that a dollar goes for about 22.25 Doblas.
12. Ethiopian Birr
The Ethiopian birr is one currency which volatility is very low. With 29.4 birrs, you will easily get one US dollar.
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13. Mauritian rupee
Mauritius prides itself on a rupee which strength is reliable. One USD will often exchange for about 36.3 rupees. This country relies on its reserves to keep its currency stable.
14. Mauritanian ouguiya
The MRU is Mauritania’s currency. It has no unit based on the divisions of ten. You will learn that 1 USD will exchange with 37.13 MRUs.
15. Sudanese pound
Despite being among the most influential currencies within the continent, it undergoes much volatility. The unstable political space within the country significantly contributes to such fluctuations. However, one USD will go for about 45.06 Sudanese pounds.
Which currency do you consider the best?
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Source: Briefly News
