Exchange rate is something every International traveller must deal with when transversing time zones and latitudes.
It basically refers to the value of one country’s currency against another country’s.
Most exchange rates are free floating. This means they appreciate or depreciate based on the economic laws of supply and demand in the foreign exchange market.
How much you get in another currency from giving a certain amount of a currency is contingent on the exchange rate.
US dollar officially trades for 417 naira, meaning a Nigerian traveller would need to give 417,000 Naira to get a $1,000 USD.
Some African countries have currencies that perform quite well in the foreign exchange market.
Below is a list of the top 10 African currencies against the US dollar.
1. Tunisian dinar: This is currently the strongest and most valuable currency in Africa. As at the time of publication, TND1 converts to $0.34
2. Libyan dinar: Libya currently has the second strongest and most valuable currency on the continent, second only to Tunisia. When converted to the dollar, LYD1000 will give you $219.20.
3. Ghanaian cedi: This West African country’s currency has the third highest exchange rate against the dollar in Africa. When we converted GHS1000, we got $164.74. That said, it’s important to note that Ghana had, in 2007, re-denominated its currency such that ten thousand Cedis became equivalent to one Ghana Cedi. The country’s Central Bank explained that the re-denomination became necessary for the sake of statistical convenience.
4. Moroccan dirham: Morocco has the fourth strongest currency in Africa, for now. Checks by BI Africa showed that when converted to the dollar, DH1000 becomes $110.46.
5. Botswanan pula: Botswana in Southern Africa has the fifth strongest currency on the continent. BWP1000 converts to $87.
6. Seychellois rupee: This tiny island country which is located in the Somali Sea, has one of the strongest currencies in Africa. SCR1000 converted to $70 as at the time of this publication.
7. Namibian dollar: When converted NAD1000 to the dollar, we got $69.
8. South African rand: South Africa is one of the continent’s strongest economies. It also has one of the strongest currencies. When we converted ZAR1000 to the dollar, we got $69.
9. Swazi lilangeni: Although it is among the poorest countries on the continent, Eswatini (Swaziland) has one of the strongest currency. When converted to the dollar, SZL1000 gave us $69.
10. Eritrean nakfa: In Eritrea which is located in the Horn of Africa, they use a currency called the Eritrean nakfa. The currency has the eighth strongest exchange rate against the dollar. As at the time of comparison, ERN1000 converted to $66.66.