The value of any currency is never constant; rather, it is determined by various factors such as interest rate, economic growth, inflation rate, and the impact of other currencies. A high rate of inflation inside a country causes a devaluation of the country’s currency, which reduces its value when compared to other currencies. In this post, we will show African countries with weakest currencies.
African Countries With Weakest Currencies
The following is a list of the seven African countries with the weakest currencies.
1. Sao Tome and Principe Dobra
1 USD equal 21,050 STD
The Dobra of Sao Tome and Principe is Africa’s weakest currency, with one dollar worth nearly 20,000 USD.
Sao Tome is an island state and a tiny country in central Africa whose major source of money is cocoa, coffee, and coconut exports, although this is insufficient to maintain the country’s local economy. The currency was initially launched in 1977, however it has since depreciated.
2. Seirra Leone leon(SLL)
1 USD=10,250 SLL
The serria Leone leon is the country’s official currency. It is split into 100 cents, which are no longer in use due to the currency’s poor value. Due to civil conflict, economic hardships, and the Ebola and Covid-19 pandemics, Sierra Leone Leone (SLL) has significant inflation. Because of the country’s high inflation rate, corruption, and growing poverty, the country’s currency is weak. Checkout List of 7 Biggest Airports In Africa (Updated)
3. Guinea franc (GNF)
1USD equals 9450 GNF
In 1995, the first Guinean Franc was issued to replace the CFA franc. The 500 franc notes have the least GNF dominance in circulation. Although centimes were divided into the currency, they were never issued.
Given the country’s valuable natural resources, Guinea should have been one of Africa’s richest countries. Gold, diamonds, and aluminium are among them, but the country’s currency continues to depreciate against the dollar due to the country’s high inflation rate.
4. Uganda shillings (UX)
1 USD =3500 Uganda shillings
Uganda’s official currency is the Uganda shilling. The country’s foreign exchange is based on agriculture, although it has seen significant inflation. In 2013, the Uganda shillings were legally split into cents, however this is no longer the case. Read also 5 Africa’s Most Powerful Currencies 2021
Due to increasing outflows of investment following the Covid 19 epidemic, the Ugandan currency declined by 3% versus the US dollar in the first five months of 2020, according to the Uganda’s Central Bank.
5. Malagasy Ariary (MGA)
1 USD=3,450 MGA
Madagascar, an island republic in eastern Africa, uses this money as its official currency. Agriculture, textiles, and mining industries all contribute to the country’s economy.
6. Tanzanian shillings (TZS)
1 USD =2,500 TZS
Tanzania’s currency is split into 100 cents. On June 14, 1996, the Tanzanian shilling replaced the East African shilling.
7. Burundi Franc (BIF)
1 USD=1900 BIF
When Belgium seized the former German colony in 1916 and replaced the German East African rupie with the Belgian Congo franc, the franc became Burundi’s currency.
Burundi utilised Belgian Congo’s currency until 1960, when the Rwanda and Burundi franc was created, and then started printing its own in 1964.
Source: Nyscinfo
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