Currency strength expresses the value of currency, for economists, it is often calculated as purchasing power.
A currency’s strength is determined by supply and demand just like everything else in the market, if the demand for a currency is high, then the value (strength) of that currency will rise with the demand.
Currently in the world, the United States dollar is considered one of the strongest currency and as such it is mostly used as the benchmark when anyone wants to measure the strength of some other currencies.
African economies have their own challenges with the currencies but some have remained valuable. Here are the 5 strongest African currencies for 2019 compared with the US Dollar.
- The Libyan dinar
The Libyan dinar is used in Libya. Dinar is monetary unit used in several Middle Eastern countries.
The Libyan dinar is the strongest currency in Africa based on its exchange rate to the US dollar and its purchasing power.
Currently, US$1 exchanges for 1.40 LYD
2. The Tunisia dinar
The Tunisian dinar is the second strongest currency in Africa.
Currently, US$1 exchanges for 2.86 TND
3. The Ghana cedis
Ghana cedis is the only West African currency to make it to this list of the top 5 strongest currencies in Africa.
Currently to own US$1 you to exchange it with GHS5.42.
4. The Moroccan dirham
The Moroccan dirham is the currency of Morocco and as it stands now it the fourth strongest currency in Africa.
currently at 9.62 MAD to US$1.
5. The Botswana Pula
Botswana’s official currency is the pula. Formerly Botswana shared currency with South Africa – South African Rand
The pula currently exchanges at 11.03 BWP to US$1 and placed fifth on the list.