The advantages of a strong currency in Africa, as is everywhere else in the world, go beyond financial measures, as it also impacts commerce, investment, regional integration, and geopolitical power.
Africa, which is largely made up of rapidly developing nations, also boasts some of the world’s best-performing currencies.
An example would be the Kenyan Shilling, which during the first half of the year, experienced a significant bounce back after months of decline.
A strong currency is frequently indicative of a healthy economy. It indicates that a country has low inflation, a stable balance of payments, and successful monetary policy.
Additionally, a strong currency reduces the possibility of hyperinflation while also protecting citizens’ buying power. This, in turn, enhances consumer and investor confidence, resulting in more economic activity and growth.
As Africa moves towards greater economic integration through initiatives like the African Continental Free Trade Area (AfCFTA), the strength of national currencies becomes increasingly important.
Strong currencies facilitate smoother and more equitable trade between African nations, reducing the reliance on external currencies like the US dollar or the Euro.
This can lower transaction costs, enhance price stability, and promote regional economic cohesion. Countries with strong currencies can play a pivotal role in driving the success of intra-African trade, benefiting the entire continent.
With that said, here are the 10 strongest currencies in Africa for August, using Forbes Currency Converter.
Top 10 African countries with the strongest currencies in August 2024
Rank Country Currency/$ Currency
1. Tunisia 3.05 Tunisian Dinar TND
2. Libya 4.78 Libyan Dinar LYD
3. Morocco 9.64 Moroccan Dirham MAD
4. Botswana 13.36 Botswanan Pula BWP
5. Seychelles 13.69 Seychellois Rupee SCR
6. Eritrea 15.0 Eritrean Nakfa ERN
7. Ghana 15.65 Ghanaian Cedi GHS
8. South Africa 17.92 South African Rand ZAR
9. Eswatini 17.94 Swazi Lilangeni SLZ
10. Lesotho 17.95 Lesotho Loti LSL
Source: businessinsideAfrica