Increased accessibility is a big aspect of the global currency market’s recent growth, especially in developing economies like Africa. A new generation of forex traders has been emboldened by the combination of expanding Internet penetration rates and easily available forex accounts with an attractive welcome bonus, with some brokers reporting increased participation rates over 100%. But what are Africa’s 5 most powerful currencies 2021? Here’s our list, based on data from 2021.
The Libyan Dinar
We begin with an asset that has long been Africa’s strongest and most stable currency, thanks to a tightly restricted supply that sells only some dollars to its inhabitants. Since 1973, the Libyan Dinar (LD) has been tied to the US dollar (USD), resulting in a reasonably steady exchange rate that ranges between 1.41 and 1.43.
At the current rate, a single US dollar is worth 4.5 Libyan dinars, allowing the currency to retain much of its value during the political instability and coronavirus pandemic. Read also: 10 Best Hangout Spots in Owerri, Imo State
Tunisia was formerly a French colony, hence it used the French franc for many years before 1960.
However, the Tunisian dinar (DT) has since become the country’s official currency, benefiting from a monetary policy that prohibits the export or import of dinars and their conversion into other currencies.
At the moment, a single USD is worth DT 2.87, showing that the asset is still one of the most valuable in Africa.
The Ghanaian Cedi
Prior to 2007, Ghana’s national currency was characterized by extreme volatility and unpredictability. This changed 14 years ago, when the Bank of Ghana replaced the Cedi as part of a larger economic reform that brought jobs and wealth to the country. Checkout Top 10 Most Beautiful Countries in Africa
Furthermore, Ghana’s GDP per capita, which is now the highest in West Africa, has a significant impact on the Cedi’s value. A single USD now buys 5.75 Cedi at the current exchange rate. Africa’s Most Powerful Currencies 2021
The Moroccan Dirham
For years, the Moroccan Dirham has served as the principal and de facto means of transaction in Western Sahara. As a result, the MAD is one of the strongest and most extensively used currencies in Africa, with one US dollar presently worth 9.89 dirhams.
A single US dollar is currently worth 10.90 Botswana Pula (P), with the currency’s recent expansion establishing it as one of Africa’s greatest assets of its kind. In fact, as the Botswana economy has grown more solid and stable over the last decade, it has become increasingly valued, and its listing on the Johannesburg Stock Exchange has made it extremely popular and appealing to investors.
The Pula’s exchange rate and valuation were computed on the same basis as the rand before to 1976, but this changed as part of broader economic reforms.