With its young population and rich natural resources, African countries have what it takes to rebound from the devasting effect of the COVID-19 pandemic and hedge the ongoing economic crisis in the region.
In 2024, the continent’s gross domestic product (GBP) was 2.476 trillion USD. That impressive growth is thanks to South Africa’s industrial base, Nigeria’s oil production, Ethiopia’s growing agricultural sector, and other African operations.
Now, let’s look at the top 10 strongest currencies in Africa. We compare each one to the USD, analyze its current inflation rate, and discuss its host country’s economic driver.
Why Is Currency Strength Important?
Currency strength is a valuable reference for forex traders to anticipate future market movement. Forex traders who know which currency is thriving can confidently decide which forex pair to trade and which position to execute.
Image the Japanese yen (JPY) declining due to Japan’s negative CPI report. Meanwhile, the American economy is enjoying positive market sentiment towards USD’s increase in interest rate.
In this case, a fundamental forex trader will execute a buy (long) position on USD/JPY. Why?
The simple answer: they expect the USD to strengthen against the JPY. It means more yen for a single dollar.
Is USD the World’s Most Expensive Currency?
No, the most expensive currency in the world is the Kuwaiti Dinar (KWD)
One KWD is worth around 3.20 to 3.30 USD. Due to the country’s increasing oil exports, analysts forecast KWD to grow even more in the following years.
How about the USD? While it’s not the most expensive, it reigns as the most influential. The US economy is the world’s largest, and the USD is the world’s primary reserve currency.
Read More: Businesses Face Crackdown for Rejecting ZiG Payments
10 Strongest Currencies in Africa
African countries have continuously faced economic challenges despite boasting rich resources. However, several countries managed to stabilize their currencies to keep up with the growing global economy.
Here are Africa’s top 10 strongest currencies. Explore their rich histories, development, and the key factors driving their dominance.
| Currency Name | Code | Exchange Rate to 1 USD |
| Tunisian Dinar | TND | 3.03 TND |
| Libyan Dinar | LYD | 4.74 LYD |
| Moroccan Dirham | MAD | 9.96 MAD |
| Botswana Pula | BWP | 13.16 BWP |
| Seychellois Rupee | SCR | 13.62 SCR |
| Eritrean Nakfa | ERN | 15.00 ERN |
| Ghanaian Cedi | GHS | 15.68 GHS |
| South African Rand | ZAR | 17.37 ZAR |
| Zambian Kwacha | ZMW | 26.46 ZMW |
| Egyptian Pound | EGP | 48.60 EGP |
1. Tunisian Dinar (TND)
1 USD = 3.03 TND
Tunisia’s national currency, the Tunisian dinar, is the strongest in the African region. The country is not only known for its machinery, textiles, and agricultural exports; it’s also a highly regarded destination among tourists. This dual focus makes its industrial base and tourism industry significant drivers of its economy.
From its introduction in 1960 to 1964, the dinar had a fixed exchange rate against USD and other major currencies. As the Tunisian economy developed, the Banque Centrale de Tunisie (Central Bank of Tunisia) adopted a more flexible exchange rate.
2. Libyan Dinar (LYD)
1 USD = 4.74 LYD
The Libyan dinar is the second strongest currency in the African region. This status is driven by the nationalization of the country’s oil industry.
Libya’s economy is dominated by oil production and exports. The industry accounts for about 95% of the country’s export earnings, significantly contributing to its GDP.
Moreover, Libya is the largest proven reverse in the region.
The Libyan dinar was formed in 1971 after the official formation of the Libyan Arab Republic. This new currency symbolized the shift from monarchy to central economic control.
3. Moroccan Dirham (MAD)
1 USD = 9.96 MAD
The Moroccan dirham is the official currency of the Kingdom of Morocco. The dirham is the third strongest currency in Africa due to its growing agriculture, tourism, international remittance, and phosphates sectors.
The Moroccan dirham was introduced in 1960 after the country gained independence from France. This replaced the Moroccan franc as the country’s national currency.
Dirham used to have a fixed exchange rate as it was initially pegged to USD. But in response to economic growth and global trade, Bank Al-Maghrib gradually moved toward a managed float exchange rate.
Note: Don’t get confused by the history of the Tunisian dinar and Moroccan Dirham, though! Both share some historical similarities; however, the dinar was pegged to USD only until 1964, while the dirham was pegged to USD until 1973.
4. Botswana Pula (BWP)
1 USD = 13.16 BWP
The Botswana pula is the fourth strongest currency in Africa. The country is known for its diamond mining, which significantly contributes to its export income.
Moreover, the Bank of Botswana’s fiscal policies and steady inflation control help stabilize the value of BWP.
Fun fact: The South African rand was a legal tender in Botswana until the introduction of the Botswana pula in 1976.
5. Seychellois Rupee (SCR)
1 USD = 13.62 SCR
The fifth-largest currency in Africa is the Seychellois Rupee. This is thanks to the country’s strong tourism and fishing industries. Moreover, Seychellois’ small geography is vital in stabilizing the rupee’s strength.
After British colonial rule, the Seychellois rupee was introduced to replace the Mauritian rupee as the country’s official currency.
For financial enthusiasts, the Seychellois may be a familiar place. This country is a popular offshore financial service provider to companies, enterprises, and investors worldwide.
6. Eritrean Nakfa (ERN)
1 USD = 15.00 ERN
The Eritrean Nakfa is pegged to the USD, which provides stability and contributes to its status as the sixth strongest currency in Africa. This is despite having limited exports.
However, that doesn’t mean the country doesn’t have a thriving industry. Even if it’s relatively weaker than its neighboring countries, the country has a steady agriculture, mining, and small industrial sectors.
After gaining independence from Ethiopia in 1993, the country introduced the Eritrean Nakfa as its official currency in 1997.
7. Ghanaian Cedi (GHS)
1 USD = 15.68 GHS
Ghana has a rich agricultural and gold mining industry. The Bank of Ghana also takes a proactive approach to addressing inflation.
That’s why the Ghanaian cedi, currently ranked seventh, undoubtedly belongs to this list of the strongest currencies in Africa.
After the rule of Great Britain, the Ghanaian cedi was introduced in 1965 as the country’s official currency. However, several redenominations were implemented to rebalance the cedi after hyperinflation.
The latest redenomination introduced the new cedi, the Bank of Ghana’s way of simplifying cedi transactions and restoring the market’s confidence in the currency.
Many recognize the proactive action of the country’s central bank. The country managed inflation better than many African countries.
8. South African Rand (ZAR)
1 USD = 17.37 ZAR
The South African rand ranks eighth as the strongest currency in Africa due to its diverse economy.
Despite political challenges, the rand remains resilient and stable due to its strong industrial base. Its solid mining (gold, diamond, and platinum), manufacturing, and finance industries are vital to the growth and stability of the rand.
The rand was initially pegged to major currencies to stabilize its value. But today, its exchange rate floats freely.
After becoming a republic and leaving the Commonwealth, the South African Reserve Bank introduced the South African rand as the country’s official currency.
9. Zambian Kwacha (ZMW)
1 USD = 26.46
As the region’s largest producer of copper, Zambia’s Zambian kwacha ranks 9th among the strongest currencies in Africa.
If you invest in copper and want to monitor its price, you should also consider the health of the Zambian kwacha. Kwacha’s exchange rate is a major driver of the copper market.
Following Zambia’s independence from Great Britain in 1964, the Bank of Zambia introduced the Zambian kwacha as the country’s official currency.
10. Egyptian Pound (EGP)
1 USD = 48.60 EGP
The Egyptian pound is one of the oldest African currencies and is ranked as the 10th strongest currency in the region.
The price of the Egyptian pound is driven by the country’s tourism, international remittance, and agricultural sectors.
The Suez Canal, Egypt’s artificial sea-level waterway, is also a vital driver of the Egyptian economy. The canal generates substantial revenue for the country and contributes to its economic development and overall employment.
The Economy of African
Africa’s GDP amounted to over 2.476 trillion U.S. dollars in 2024. This value growth is due to the region’s dependency on commodities like oil, gold, and agricultural products.
Here are the top African countries by GDP.
| South Africa | USD 373.23 billion |
| Egypt | USD 375.59 billion |
| Algeria | USD 266.78 billion |
| Nigeria | USD 252.74 billion |
| Ethiopia | USD 205.13 billion |
Following the top five African countries per GDP are Morocco, Kenya, Angola, Côte d’Ivoire, Tanzania, Ghana, Congo, Uganda, Tunisia, Cameroon, Libya, Senegal, Zimbabwe, Zambia, and Sudan, with a total of 1.003 trillion combined.
Top 10 Currencies in Africa
Knowing which African currencies stand strong against the ongoing economic uncertainties is vital to making informed investment decisions. If a currency is deemed strong, its host economy has sound economic policies (fiscal and monetary), positive foreign investment sentiment, and a positive trade balance, which help stabilize its value.
