Ghana's currency, the Cedi has been ranked among the most valuable currencies on the African continent in 2020.
The rankings, analysed by African business experts, Business Insider, relied largely on a country's GDP per capita.
The Cedi was the only West African currency that made the list of of the top 5 most valuable African currencies for 2020.
Apart from this, Business Insider also rated Ghana's GDP per capita as the highest in West Africa.
Below is the full article:
It is common knowledge that the value of currencies around the world change on a regular basis. In some parts of the world, some currencies are considered stronger than many others, and the reason for this anomaly will be explained below.
There are also countries whereby their Highest Currency is not more than 20, whereas some developing country’s lowest value currency starts from 1000 and beyond.
So What makes a strong currency?
Many people believe that the US Dollar and Pound Sterling are not only the strongest currencies in the world, but have great influence over the other currencies. This mythology is not true as there are several currencies whose conversion rates are way higher than US Dollar and Pound Sterling.
What makes a powerful and strong currency is the rate of international market demand, which is why it is important one must know the values of these currencies, as it can be very helpful in multiple scenarios.
A Global Currency
The value of currencies in this article is based on their exchange rates against the US dollar. Why? Because it is Global currency.
A global currency is one that can be used for all kinds of trade transactions anywhere in the world. An example of a global currency is the US Dollar because 64% of all foreign exchange transactions worldwide are carried out using the USD.
This is why we decided to base our list of Africa’s Top 5 Most Valuable currencies on their exchange rates using the US Dollar as the standard unit of value at the time of writing this article.
Africa’s Top 5 Most Valuable currencies
The below list will give you an idea about the Most Valuable Currencies in Africa and which exchange rate will be the most profitable.
Libyan Dinar (1 USD = LD 1.31)
The Libyan Dinar has been the strongest currency in Africa for a very long time despite the continuous war and violence that has engulfed the country. In Libya, the CBL has a programme that only sells a limited number of dollars to its citizens.
Tunisian Dinar (1 USD = DT 2.73)
The Tunisian Dinar is strong because Tunisia has in place a well-defined export, import, and conversion policy.
Ghanaian Cedi (1 USD = GH? 5.78)
Ghana is the only West African country on this list and the Cedi is more valuable because of the country’s GDP per capita, which is also the largest in West Africa.
Moroccan Dirham (1 USD = MAD 9.20)
The Moroccan dirham is pegged to a currency basket of the euro and US dollar, weighted 60% to the euro and 40% to the US dollar.
Two years ago, the central bank began a process of liberalizing the Moroccan exchange rate so that it could be more flexible in the face of external market shocks, such as the 2008 global recession.
Botswana Pula (1 USD = P 11.66)
The Pula has been stronger for some years now and the country's economy and political structure is often lauded as a shining example of how an African democracy can work.
The Botswanan economy is often regarded as an African success story, and the country enjoys one of the highest Human Development Indexes (HDI) on the continent. Government revenue is derived from mining, cattle ranching, and the service sector.
Furthermore, the Pula is one of the stronges currencies in Africa because traders trade it on the Johannesburg Stock Exchange, which is the largest stock exchange in Africa.
The Cedi was the only West African currency that made the list