Top 10 Strongest African Currencies in 2023

Africa, the second-largest continent in the world, is known for its vastness and diversity. It has always been a crucial player in the global economy, thanks to its rich natural resources, such as oil, gas, and minerals. 

In recent years, Africa has also witnessed significant growth in technology and eCommerce, making it an attractive option for investors looking to expand their horizons. 

Africa is home to 54 countries, each with its own currency. Some of these currencies are among the strongest in the world and have performed remarkably well in comparison to the United States Dollar (USD), which is considered the global reserve currency. 

To understand what makes a currency ‘strong’, it is necessary to know its purchasing power and stability in the global market, which can be influenced by factors such as inflation, interest rates, economic stability, and political stability.

 In this post, we will explore the top 10 strongest African currencies and their rankings. But before we delve into the list, let’s take a look at all the African currencies.

List of African Currencies According to USD Rates

It’s also important to note that a “strong” currency doesn’t necessarily imply a healthy economy, but rather, it represents how much one unit of that currency buys in other currencies. 

Now that we’ve laid the groundwork, let’s find out the top 10 strongest African currencies. They Include:

1. Tunisian Dinar (TND) 1 USD = 3.11
2. Libyan Dinar ( LYD) 1 USD = 4.81
3. Moroccan Dirham ( MAD) 1 USD = 10.08
4. Ghanaian Cedi (GHC) 1 USD = 12
5. Botswana Pula (BWP) 1 USD = 13.60
6. Seychelles Rupee (SCR) 1 USD = 14.31
7. Eritrea Nakfa (ERN) 1 USD = 15
8. South African Rand (ZAR) 1 USD = 18.82
9. Namibian Dollar (NAD) 1 USD = 18.83
10. Lesotho Loti (LSL) 1 USD = 18.83 

1. Tunisian Dinar: (TND) 1 USD = 3.11

The Tunisian Dinar, the official currency of Tunisia, is currently the strongest African currency in 2023. It is subdivided into 1,000 millimes and has an exchange rate of 3.11 to the USD.

Despite being a small country in North Africa, Tunisia has managed to maintain a robust economy, with the Dinar standing strong against the US Dollar. The strength of the Dinar is not solely due to the economy’s stability, but also a firm government policy that prohibits the export of the currency. The Tunisian central bank has a strict rule that dinars cannot be converted to other currencies and taken out of the country. 

2. Libyan Dinar: ( LYD) 1 USD = 4.81

Coming in second on our list of the strongest African currencies is the Libyan Dinar.  The Libyan Dinar (LYD) holds the status of official currency in Libya and is currently exchanged at a rate of 4.81 LYD for 1 USD. This currency is further subdivided into 5 qirsh, which is equivalent to 50 mellim or milliemes, or 5 pence.

The Libyan Dinar has been a stable currency historically, despite the country’s political and social unrest in recent years. Its strength can be attributed to its vast oil reserves, which are responsible for the majority of the country’s revenue.

3. Moroccan Dirham: ( MAD) 1 USD = 10.08

Moroccan Dirham is the third strongest African currency, according to the 2023 ranking. One US dollar is equivalent to 10.08 dirhams, making it a valuable currency used in Western Sahara and Morocco. The dirham is also a subunit of the Moroccan peso, a currency that was used in Morocco until 1974 when it was replaced by the dirham.

Interestingly, the Moroccan Dirham is also recognized as one of the only two African currencies that are freely convertible on the international market, making it an attractive option for international investors and traders.

4. Ghanaian Cedi:(GHC) 1 USD = 12

Ghanaian Cedi is currently the fourth strongest African currency. As of December 2023, it has a current value of 12 GHC against the US Dollar. The GHC is the official currency of Ghana, and it is subdivided into smaller units known as pesewas.

Ghanaian Cedi is widely accepted throughout the country and is used for all transactions, including purchasing goods and services, paying bills, and conducting business. The currency is highly regulated by the Bank of Ghana, which ensures its stability and prevents inflation from affecting its value.

5. Botswana Pula (BWP) 1 USD = 13.60

Ranking 5th on our list is the Botswana Pula. It serves as the official currency of Botswana and is further divided into 100 Thebe. The word “Pula” means ‘rain’ in Setswana, which is the national language of Botswana. The currency is currently pegged at a rate of 13.60 Pula per 1 USD.

6. Seychelles Rupee (SCR) 1 USD = 14.31

6th on our list is the Seychelles Rupee, the official currency of Seychelles, an island nation in the Indian Ocean. The currency was introduced in 1977, replacing the former currency, the Seychelles Rupee and British Pound. Today, the Seychelles Rupee is pegged to 14.31 SCR at 1 USD, and it is subdivided into 100 cents.

Despite its relatively small size and population, the Seychelles Rupee is a stable currency, and its value has been growing steadily over the past few years, thanks to the country’s thriving tourism industry and sound economic policies.

7. Eritrea Nakfa (ERN) 1 USD = 15.07

You’ve probably heard of the Naira, Cedi, or the shilling. But what about the Nakfa?  Despite being one of the lesser-known currencies, the Eritrean Nakfa is still one of the strongest currencies on the continent. It is pegged at a fixed rate of 15.07 ERN to 1 USD and is divided into 100 smaller units called cents. This currency has been in circulation since 1997 and is known for its stability, making it a popular choice for local transactions.

Despite its strength, the Eritrean government has imposed strict controls on the amount of Nakfa that can be taken out of the country, making it difficult for travelers to exchange currency outside of Eritrea.

8. South African Rand (ZAR) 1 USD = 18.82

At number 8 on our list is the South African Rand. The South African Rand has a fascinating history, having been introduced in 1961 to replace the South African pound. The Rand is the official currency of South Africa and is divided into 100 cents. The Rand is currently exchanged at 18.82 ZAR for every USD. 

9. Namibian Dollar (NAD) 1 USD = 18.83

Coming 9th on our list is Namibia’s dollar. As of the time of the ranking, the currency had a value of 18.83 to the US dollars and is subdivided into 100 cents. It is worth noting that the Namibian dollar is pegged to the South African rand, which means that it closely follows the value of the rand. Despite this, Namibia’s economy has remained relatively stable, and its currency has continued to hold a relatively strong position in the African market.

10. Lesotho Loti (LSL) 1 USD = 18.83

The last but not least, and 10th on our list is the Lesotho Loti, with an exchange rate of 18.83 Loti against 1 USD. The Loti is the official currency of the Kingdom of Lesotho and has a fascinating history. It was introduced to replace the South African Rand and is now used as the primary currency. However, The Rand still serves as the legal tender. The currency is subdivided into 100 lisentte, which is a term that is unique to Lesotho. 

Conclusion

So there you have it. These are the top ten strongest African currencies as of December 2023. The Tunisian Dinar, valued at 3.11 USD, is currently at the top of the list of the strongest currencies in Africa. Despite facing recent volatility, the Dinar has remained one of the most stable currencies on the continent. Other currencies that rank high in terms of strength include the Libyan Dinar, Ghana Cedi, Moroccan Dina, Botswana Pula, Seychelles Rupee, Eritrean Nakfa, South African Rand, Lesotho Loti, and Namibian Dollar.

If you’re planning to invest in Africa, it’s important to know which currencies are currently performing the strongest. It’s also worth noting that the ranking of these currencies can change over time, depending on various factors such as political stability, inflation rates, and economic growth.

Therefore, it’s crucial to do thorough research and gain a clear understanding of the current market conditions of each country before making any investment decisions. By doing so, you can minimize the risks and maximize your potential profits.